By William Gullotti
Buffalo, N.Y., April 17 – Morgan Stanley (A1/A-/A+) priced a four-tranche offering of floating-rate and fixed-to-floating rate senior notes at par for a total of $8 billion on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The single series of floaters, totaling $1 billion and maturing in 2028, will bear interest at SOFR plus 102 basis points.
The fixed-to-floating series maturing in 2028 totals $1.5 billion with an initial 5.652% coupon. The interest rate will convert to SOFR plus 101 bps on April 13, 2027.
The second fixed-to-floating series, totaling $2.5 billion and maturing in 2030, has an initial 5.656% coupon. The interest rate will convert to SOFR plus 126 bps on April 18, 2029.
The 2035-maturing series of fixed-to-floaters has an initial 5.831% coupon and totals $3 billion. The interest rate on the 2035 notes will convert to SOFR plus 158 bps on April 19, 2034.
The floaters feature a par call, exercisable in whole on April 13, 2027, or in whole or in part on or after March 13, 2028.
Each series of fixed-to-floaters are non-callable until Oct. 12, 2024, at which point each series will be subject to a make-whole call until its interest conversion date. Each series will then be callable in whole, but not in part, at par on that date.
The 2028 notes will also feature a par call, exercisable in whole or in part, starting March 13, 2028.
The 2030 notes’ par call, exercisable in whole or in part, will start March 18, 2030.
The 2035 notes’ par call will start Jan. 19, 2035, likewise exercisable in whole or in part.
Morgan Stanley & Co. LLC is the bookrunner for the global medium-term notes.
Morgan Stanley is a New York-based financial products and services company.
| Issuer: | Morgan Stanley
|
| Amount: | $8 billion
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| Bookrunner: | Morgan Stanley & Co. LLC
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| Pricing date: | April 17
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| Settlement date: | April 19
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| Issuer ratings: | Moody’s: A1
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| S&P: A-
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| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| 2028 floaters
|
| Amount: | $1 billion
|
| Issue: | Floating-rate notes
|
| Maturity: | April 13, 2028
|
| Coupon: | SOFR plus 102 bps
|
| Price: | Par
|
| Yield: | SOFR plus 102 bps
|
| Call features: | In whole on April 13, 2027, or in whole or in part on or after March 13, 2028 at par
|
| Cusip: | 61747YFN0
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|
| 2028 notes
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| Amount: | $1.5 billion
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| Issue: | Fixed-to-floating rate notes
|
| Maturity: | April 13, 2028
|
| Coupon: | 5.652% initially; at SOFR plus 101 bps beginning April 13, 2027
|
| Price: | Par
|
| Yield: | 5.652%
|
| Call features: | Non-callable until Oct. 21, 2024; from Oct. 21, 2024 and prior to April 13, 2027 at make-whole amount of Treasuries plus 15 bps; in whole on April 13, 2027, or in whole or in part on or after March 13, 2028 at par
|
| Cusip: | 61747YFP5
|
|
|
| 2030 notes
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| Amount: | $2.5 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Maturity: | April 18, 2030
|
| Coupon: | 5.656% initially; at SOFR plus 126 bps beginning April 18, 2029
|
| Price: | Par
|
| Yield: | 5.656%
|
| Call features: | Non-callable until Oct. 21, 2024; from Oct. 21, 2024 and prior to April 18, 2029 at make-whole amount of Treasuries plus 20 bps; in whole on April 18, 2029, or in whole or in part on or after March 18, 2030 at par
|
| Cusip: | 61747YFQ3
|
|
|
| 2035 notes
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| Amount: | $3 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Maturity: | April 19, 2035
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| Coupon: | 5.831% initially; at SOFR plus 158 bps beginning April 19, 2034
|
| Price: | Par
|
| Yield: | 5.831%
|
| Call features: | Non-callable until Oct. 21, 2024; from Oct. 21, 2024 and prior to April 19, 2034 at make-whole amount of Treasuries plus 20 bps; in whole on April 19, 2034, or in whole or in part on or after Jan. 19, 2035 at par
|
| Cusip: | 61747YFR1
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