Morgan Stanley plans seven-year floaters on CPI with 6% initial rate

By Susanna Moon

Chicago, Jan. 26 - Morgan Stanley plans to price fixed-to-floating notes due Feb. 15, 2019 linked to the Consumer Price Index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 6% for the first year. After that, it will be equal to the year-over-year change in the CPI plus a spread of 200 basis points. Interest will be payable monthly and cannot be less than zero.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.

The notes will settle on Feb. 15.

The Cusip number is 61745E6M8.

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