Morgan Stanley unit exercises make-whole call for 2027, 2028 notes

By William Gullotti

Buffalo, N.Y., July 18 – Morgan Stanley Domestic Holdings, Inc. will redeem all of its $400 million 3.8% senior notes due 2027 (Cusip: 269246BQ6) and all of its $420 million 4.5% senior notes due 2028 (Cusip: 269246BS2) by exercising its make-whole call option, according to a press release on Tuesday.

The 3.8% notes due 2027 will be redeemed at a price equal to the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest due through the notes’ May 24, 2027 maturity, discounted at Treasuries plus 25 basis points.

Accrued interest will also be paid up to, but excluding, the July 28 redemption date. Payable interest for the redemption is $16.255556 per $1,000 principal amount for an aggregate sum of $6,502,222.22.

The 4.5% notes due 2028 will be redeemed at a price equal to the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest due through the notes’ maturity on March 20, 2028, also discounted at Treasuries plus 25 bps.

Accrued and unpaid interest, following the same redemption timeline and totaling $1,995,000, or $4.75 per $1,000 principal amount, will be paid.

According to the press release, the notes from both series are held through Depository Trust Co. (DTC) and will be redeemed in accordance with DTC procedures.

Bank of New York Mellon Trust Co., NA is the trustee.

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

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