By Laura Lutz
Des Moines, Dec. 19 - Morgan Stanley arranged a $5 billion private placement of equity units with investor China Investment Corp. Ltd., according to a news release.
The units will be mandatorily convertible into common stock on Aug. 17, 2010 at prices between a reference price and a threshold price at a 20% premium to the reference price. The reference price will be determined the week of Dec. 17.
Each unit will pay dividends of 9%, payable quarterly.
Proceeds will be used to improve the company's capital position and for future growth opportunities.
Morgan Stanley is a New York-based financial services company.
| Issuer: | Morgan Stanley
|
| Issue: | Units mandatorily convertible into common stock
|
| Amount: | $5 billion
|
| Conversion date: | Aug. 17, 2010
|
| Dividends: | 9%
|
| Investor: | China Investment Corp. Ltd.
|
| Announcement date: | Dec. 19
|
| Stock symbol: | NYSE: MS
|
| Stock price: | $48.07 at close Dec. 18
|
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