Morgan Stanley Issues $4.5 Billion of Bonds in Three-Part Sale

Morgan Stanley raised $4.5 billion in its second benchmark-size bond deal this year.

The biggest financial brokerage sold $2.5 billion of 3.75 percent, 10-year notes at a yield of 178 basis points more than similar-maturity Treasuries, $1.25 billion of 1.75 percent, three-year debt at a spread of 140 basis points and $750 million of three-year, floating-rate notes at 125 basis points more than the London interbank offered rate, according to data compiled by Bloomberg. The new securities are expected to be rated Baa1 by Moody’s Investors Service.

Morgan Stanley, based in New York, last sold benchmark debt on Jan. 23, issuing $500 million of 2.01 percent, three-year debt at a relative yields of 162.7 basis points, Bloomberg data show. The bonds were quoted at 100.6 cents on the dollar on Feb. 19 to yield 1.8 percent, according to prices compiled by Bloomberg.

The offering is the bank’s largest in the U.S. since it issued $4.5 billion in two-parts in April 2011, Bloomberg data show. Benchmark sales are typically at least $500 million.