By Angela McDaniels
Tacoma, Wash., Aug. 27 - CMT Linked Trust Units Series 2010-01 upsized its CMT-linked series 2010-01 trust units due Aug. 6, 2019 to $13.42 million from $12.92 million, according to an FWP filed with the Securities and Exchange Commission by Morgan Stanley.
The trust units are backed by Altria Group, Inc.'s 9.25% notes due Aug. 6, 2019, which are guaranteed by Philip Morris USA Inc.
The coupon will be 5% for about two years. Beginning Aug. 6, 2012, the rate will be equal to the 10-year Constant Maturity Treasury rate, subject to a maximum of 15%. Interest is payable semiannually and cannot be less than zero.
The payout at maturity will be par.
The trust units will be called if the underlying notes are called. If this occurs, the underlying notes will be sold at market value, and any required payments to the swap counterparty will generally be made first. The issuer said that because of this, unitholders may receive less than par if the units are called.
The issue may be further upsized prior to settlement.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | CMT Linked Trust Units Series 2010-01
|
| Issue: | CMT-linked series 2010-01 trust units backed by Altria Group, Inc. 9.25% notes due Aug. 6, 2019
|
| Amount: | $13,415,000, upsized from $12,915,000
|
| Maturity: | Aug. 6, 2019
|
| Coupon: | Initially 5%; beginning Aug. 6, 2012 equal to 10-year CMT rate, capped at 15%; payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | If underlying notes are called
|
| Pricing dates: | Aug. 25 for $12,915,000; Aug. 27 for $500,000
|
| Settlement date: | Aug. 30
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.25%
|
| Cusip: | 126009AA7
|
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