Morgan Stanley offers $1,000-par fixed-to-floating noncumulative preferreds; price talk around 5.5%

By Stephanie N. Rotondo

Phoenix, April 22 - Morgan Stanley launched an offering of $1,000-par series H fixed-to-floating rate noncumulative perpetual preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is around 5.5%, a trader said.

The preferreds will be issued as depositary shares representing a 1/25th interest.

Morgan Stanley & Co. LLC is running the books.

When declared, dividends will be payable on a semiannual basis at a fixed rate until July 15, 2019. At that time, the dividend will begin floating at Libor plus a spread and will be payable quarterly.

The preferreds can be redeemed on or after July 15, 2019 or in whole within 90 days of a regulatory capital treatment event at par plus accrued dividends.

The preferreds will not be listed on any exchange.

The New York-based investment bank will use the proceeds for general corporate purposes.

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