By Devika Patel and Cristal Cody
Columbus, Ohio, Sept. 14 – Morgan Stanley set the spread for a $3 billion offering of 15-year fixed-to-floating rate subordinated notes (Baa1/BBB/BBB+/A) at Treasuries plus 117 basis points, according to a market source. The notes were sold at par on Monday.
The notes start with a 2.484% coupon rate that resets on Sept. 16, 2031 to SOFR plus 136 bps.
The spread was talked in the 135 bps area.
The notes have 10 years of call protection.
Morgan Stanley & Co. LLC and Samuel A. Ramirez & Co. Inc. are the active bookrunners, and Academy Securities Inc. and R. Seelaus & Co. Inc. are passive bookrunners.
The financial services company is based in New York.
| Issuer: | Morgan Stanley
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Amount: | $3 billion
|
| Maturity: | Sept. 16, 2036
|
| Bookrunners: | Morgan Stanley & Co. LLC and Samuel A. Ramirez & Co. Inc. (active) and Academy Securities Inc. and R. Seelaus & Co. Inc. (passive)
|
| Coupon: | 2.484% start rate; converts to SOFR plus 136 bps on Sept. 16, 2031
|
| Price: | Par
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | In whole at par on Sept. 16, 2031 and in whole or in part at any time at par after March 16, 2036
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB+
|
| DBRS: A
|
| Price talk: | Spread of 135 bps area
|
| Cusip: | 61747YEF8
|
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