Morgan Stanley prices benchmark fixed-to-floating deal; Medley expected to list soon

By Stephanie N. Rotondo

Seattle, Jan. 24 – The preferred stock primary market popped out a new deal on Tuesday, as Morgan Stanley & Co. Inc. brought $1 billion of 5.85% series K fixed-to-floating rate noncumulative preferreds.

Price talk was initially in the 6.125% area, according to a market source, but was soon revised to 5.875%.

Post-pricing, a market source saw the issue at $25.15 bid, $25.20 offered.

The issue is non-callable for 10 years. Morgan Stanley & Co. LLC is the bookrunner.

The dividend rate will be fixed until April 15, 2027, at which point it will be based on Libor plus 349.1 basis points.

Proceeds will be used for general corporate purposes.

On the heels of the new deal, the New York-based financial services firm’s 6.375% series I fixed-to-floating rate noncumulative preferreds (NYSE: MSPrI) were initially off a penny at $26.25 but closed 6 cents higher.

Meanwhile, a trader said that Medley LLC’s $34.5 million of 7.25% $25-par notes due 2024 “should be trading on the New York Stock Exchange soon.”

He said the ticker symbol would be “MDLQ.”

The company priced the deal on Jan. 13, initially selling $30 million of the notes. On Jan. 18, the company said its $4.5 million greenshoe had been fully exercised.

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