Morning Commentary: Morgan Stanley bringing benchmark deal to market; Medley expected to list soon

By Stephanie N. Rotondo

Seattle, Jan. 24 – The preferred stock primary market was showing signs of activity on Tuesday, as Morgan Stanley & Co. Inc. announced plans for a benchmark offering of series K fixed-to-floating rate noncumulative preferreds.

Price talk was initially in the 6.125% area, according to a market source, but was soon revised to 5.875%.

Prior to the revision, a trader said the issue was “already trading at a premium” in the early gray market, pegging the paper at $25.05 bid.

“I imagine they will revise that price talk back quite a bit,” the trader said.

The issue is non-callable for 10 years. Morgan Stanley & Co. LLC is the bookrunner.

Proceeds will be used for general corporate purposes.

On the heels of the new deal, the New York-based financial services firm’s 6.375% series I fixed-to-floating rate noncumulative preferreds (NYSE: MSPrI) were off a penny at $26.25.

Meanwhile, a trader said that Medley LLC’s $34.5 million of 7.25% $25-par notes due 2024 “should be trading on the New York Stock Exchange soon.”

He said the ticker symbol will be “MDLQ.”

The company priced the deal on Jan. 13, initially selling $30 million of the notes. On Jan. 18, the company said its $4.5 million greenshoe had been fully exercised.

The deal was upsized from $25 million and the greenshoe up from $3.75 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.