Morgan Stanley plans to sell $10 million of nine-year CMT-linked floaters backed by Altria notes

By Susanna Moon

Chicago, Aug. 5 - Morgan Stanley plans to price $10 million of CMT-linked series 2010-01 trust units due Aug. 6, 2019 backed by Altria Group, Inc. notes, according to an 424B5 filing with the Securities and Exchange Commission.

The trust units are specifically backed by Altria's 9.25% notes also due Aug. 6, 2019, and the issuer is CMT Linked Trust Units Series 2010-01.

Morgan Stanley & Co. Inc. is the underwriter.

The coupon will be 4% for the first year. After that, the rate will be equal to the 10-year Constant Maturity Treasury index, up to a maximum coupon of 15%. Interest will be payable semiannually and cannot be less than zero.

The payout at maturity will be par.

The trust units will be called if they underlying securities are called.

The notes (Cusip 02209SAJ2) will price and settle in August.

The underlying securities are guaranteed by Philip Morris USA Inc.

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