By Susanna Moon
Chicago, Jan. 26 - Morgan Stanley priced another $22 million of leveraged callable CMS curve-linked notes due Jan. 25, 2025, according to a 424B2 filing with the Securities and Exchange Commission.
The add-on brings the total issue to $52 million, up from the $30 million that priced on Jan. 15.
Interest will accrue at 10% for the first year, payable quarterly. After that, the rate will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 15% and with a floor of 0%.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning Jan. 25, 2011.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Amount: | $52 million, up from $30 million
|
| Maturity: | Jan. 25, 2025
|
| Coupon: | 10% for first year; then four times the spread of 30-year CMS rate over two-year CMS rate, capped at 15% and floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates beginning Jan. 25, 2011
|
| Pricing date: | Jan. 15
|
| Settlement date: | Jan. 25
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745ER94
|
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