By Angela McDaniels
Tacoma, Wash., Aug. 31 - Morgan Stanley priced an additional $41 million of leveraged callable CMS curve-linked notes due Aug. 31, 2030, according to a 424B2 filing with the Securities and Exchange Commission.
The issue size is now $42 million. The original $1 million of notes priced Aug. 18.
The coupon is 11% for the first year. After that, the rate will be five times the spread of the 10-year Constant Maturity Swap rate over the two-year CMS rate, subject to a maximum rate of 15% per year in each interest period. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning Aug. 31, 2011.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Amount: | $42 million, upsized from $1 million
|
| Maturity: | Aug. 31, 2030
|
| Coupon: | 11% for first year; after that, five times spread of 10-year CMS rate over two-year CMS rate, capped at 15% with floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call optiono: | At par on any interest payment date beginning Aug. 31, 2011
|
| Pricing dates: | Aug. 18 for $1 million; Aug. 30 for $41 million
|
| Settlement date: | Aug. 31
|
| Agent: | Morgan Stanley & Co.
|
| Fees: | 4%
|
| Cusip: | 61745E6J5
|
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