New Issue: Morgan Stanley sells $13 million fixed-to-floaters with 1.5% start rate

By Marisa Wong

Madison, Wis., June 4 – Morgan Stanley priced $13 million of fixed-to-floating notes due May 26, 2020 linked to Libor, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 1.5% for the first year. After that, the interest rate will be equal to Libor plus 80 basis points, subject to a maximum rate. The maximum rate is 3.5% initially, stepping up to 3.75% on May 26, 2017, to 4.5% on May 26, 2018 and to 5.5% on May 26, 2019. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Fixed-to-floating notes
Underlying:	Libor
Amount:	$13 million (up from $10 million)
Maturity:	May 26, 2020
Coupon:	1.5% for first year; after that, Libor plus 80 bps, subject to minimum rate of 0% and maximum rate of 3.5% initially, stepping up to 3.75% on May 26, 2017, to 4.5% on May 26, 2018 and to 5.5% on May 26, 2019; payable quarterly
Price:	Par
Payout at maturity:	Par
Pricing date:	June 2 for $10 million, June 3 for $3 million
Settlement date:	June 4
Agent:	Morgan Stanley & Co. LLC
Fees:	0.5%
Cusip:	61760QGG3

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