Morgan Stanley to sell CMS curve and S&P 500-linked callable notes

By Susanna Moon

Chicago, April 8 - Morgan Stanley plans to price leveraged CMS curve and S&P 500 index-linked callable notes due April 23, 2025, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 10% for the first two years. After that, the rate will be five times the spread between the 30-year Constant Maturity Swap rate and the two-year CMS rate for each day that the S&P 500 is at least 750, up to a maximum rate of 15%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes are callable at par on any interest payment date beginning April 23, 2012.

The notes will settle on April 23.

Morgan Stanley & Co. Inc. is the agent.

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