Morgan Stanley announces Libor replacement for preferreds, notes

By Wendy Van Sickle

Columbus, Ohio, April 28 – Morgan Stanley announced the U.S. law-governed U.S. dollar Libor-linked preferred stock (and related depositary shares) and debt securities issued by itself and Morgan Stanley Finance LLC will transition to using the CME Term SOFR reference rate published for the tenor corresponding to the relevant U.S. dollar Libor plus a tenor spread adjustment, effective for determinations made after June 30.

The tenor spread adjustment for one-month Libor is 11.448 basis points. For three-month Libor, it’s 26.161 bps and for six-month Libor it’s 42.826 bps, according to a news release Friday.

The following preferred stock (and related depositary shares) and debts securities will not transition to the replacement rate and will accrue dividends or interest at the fixed rates specified at the end of each listing:

• The fixed-to-floating rate non-cumulative preferred stock, series E, (Cusip: 61762V200) at 7.125%;

• The fixed-to-floating rate non-cumulative preferred stock, series F (Cusip: 61762V207) at 6.875%;

• The fixed-to-floating rate non-cumulative preferred stock, series I (Cusip: 61761J406) at 6.375%;

• The fixed-to-floating rate non-cumulative preferred stock, series K (Cusip: 61762V606) at 5.85%;

• The fixed-to-floating rate non-cumulative preferred stock, series M (Cusip: 61762VAA9) at 5.875%;

• The global medium-term notes, series I, fixed/floating rate senior notes due 2028 (Cusip: 61744YAK4) at 3.591%; and

• The global medium-term notes, series I, fixed/floating rate senior notes due 2038 (Cusip: 61744YAL2) at 3.971%.

Morgan Stanley is a New York-based financial products and services company.

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