Morgan Stanley Raises $3.65 Billion in Four-Part Bond Offering

Morgan Stanley, owner of the world’s biggest brokerage, issued $3.65 billion of bonds in a four-part sale.

The offering included five-year notes split between a $2.5 billion, 2.125 percent portion yielding 145 basis points more than similar-maturity Treasuries and a $700 million floating-rate piece yielding 128 basis points more than the three-month London interbank offered rate, according to data compiled by Bloomberg.

The remaining portions were add-ons to existing debt due February 2016, including $150 million of 1.75 percent notes at a relative yield of 118 basis points and $300 million of floating-rate debt at 105 basis points, according to Bloomberg data and a person familiar with the transaction.

The offering is the New York-based bank’s first benchmark dollar-denominated issue since February, Bloomberg data show. Benchmark sales are typically at least $500 million.

The bonds may be rated Baa1 by Moody’s Investors Service, said the person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly. Morgan Stanley managed the offering, Bloomberg data show.

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