By Angela McDaniels
Tacoma, Wash., April 27 - Morgan Stanley priced $10 million of leveraged callable CMS curve-linked notes due May 13, 2024, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will accrue at 12% per year for the first two years. Beginning May 13, 2011, interest will equal seven times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, with a floor of 0% and a cap of 15%. Interest is payable quarterly.
Beginning May 13, 2011, the notes will be callable at par on any interest payment date.
If the notes are not called, the payout at maturity will be par.
The issuer said the issue size may be increased prior to settlement.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Amount: | $10 million
|
| Maturity: | May 13, 2024
|
| Coupon: | Initially, 12% per year; beginning May 13, 2011, seven times the spread of the 30-year CMS rate over the two-year CMS rate, with floor of 0% and cap of 15%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from May 13, 2011 onward
|
| Pricing date: | April 24
|
| Settlement date: | May 13
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3%
|
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