Morgan Stanley’s new 6.375% fixed-to-floating noncumulative preferreds admitted to NYSE

By Stephanie N. Rotondo

Phoenix, Sept. 23 – Morgan Stanley & Co. Inc.’s $1 billion issue of 6.375% series I fixed-to-floating rate noncumulative perpetual preferred stock began trading on the New York Stock Exchange on Tuesday.

The deal priced Sept. 11. The ticker symbol is “MSPI.”

The preferreds were issued as depositary shares representing a 1/1,000th interest.

Morgan Stanley & Co. LLC was the bookrunner. Joint lead managers included Citigroup Global Markets Inc., BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, MUFG, UBS Securities LLC and Wells Fargo Securities LLC.

Dividends will be paid on the 15th day of January, April, July and October, beginning Jan. 15, 2015. The dividend will be fixed until Oct. 15, 2024, at which point the rate will float at Libor plus 370.8 basis points.

The New York-based investment bank can redeem the preferreds on or after Oct. 15, 2024 or within 90 days of a regulatory capital treatment event at par plus accrued dividends.

Proceeds will be used for general corporate purposes.

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