Replacement Rate for U.S. Law-Governed U.S. Dollar LIBOR-Linked Preferred Stock (and Related Depositary Shares), Debt Securities and Certificates of Deposit
NEW YORK–(BUSINESS WIRE)–Morgan Stanley (NYSE: MS) announced today that, except for the instruments identified below, the U.S. law-governed U.S. dollar LIBOR-linked preferred stock (and related depositary shares) and debt securities issued by Morgan Stanley and Morgan Stanley Finance LLC, and certificates of deposit issued by Morgan Stanley Bank, N.A., will transition from using U.S. dollar LIBOR as a benchmark to the CME Term SOFR Reference Rate published for the tenor corresponding to the relevant U.S. dollar LIBOR rate plus a tenor spread adjustment (the “Replacement Rate”) (i) by operation of law, pursuant to the Adjustable Interest Rate (LIBOR) Act, or (ii) pursuant to the terms of such instruments. The replacement of U.S. dollar LIBOR with the Replacement Rate will be effective for determinations that are made after June 30, 2023 (the “Cessation Date”), when the relevant U.S. dollar LIBOR settings are expected to either cease publication or no longer be representative but will not affect any determinations made on or prior to the Cessation Date.
The tenor spread adjustment for each applicable U.S. dollar LIBOR tenor is listed below:
|
Tenor |
Tenor Spread |
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|
1 Month |
0.11448% |
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|
3 Months |
0.26161% |
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|
6 Months |
0.42826% |
The following chart identifies the U.S. law-governed U.S. dollar LIBOR-linked preferred stock (and related depositary shares) and debt securities issued by Morgan Stanley that will not transition to the Replacement Rate by operation of law or otherwise. After the Cessation Date, dividends or interest on these instruments will continue to accrue at the specified fixed rate.
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Morgan Stanley-Issued Preferred Stock (and Related Depositary Shares) |
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CUSIP |
Description |
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|
61762V200 |
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (and related depositary shares) (7.125%) |
|
|
61763E207 |
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (and related depositary shares) (6.875%) |
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|
61761J406 |
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (and related depositary shares) (6.375%) |
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61762V606 |
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K (and related depositary shares) (5.850%) |
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|
61762VAA9 |
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series M (5.875%) |
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Morgan Stanley-Issued Debt Securities |
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CUSIP |
Description |
|
|
61744YAK4 |
Global Medium-Term Notes, Series I, Fixed/Floating Rate Senior Notes Due 2028 (3.591%) |
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|
61744YAL2 |
Global Medium-Term Notes, Series I, Fixed/Floating Rate Senior Notes Due 2038 (3.971%) |
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Additional information regarding these instruments is available by accessing The Depository Trust & Clearing Corporation’s (DTCC) LIBOR Benchmark Replacement Index solution through DTCC’s Legal Notice System (LENS). This announcement does not apply to any U.S. dollar LIBOR-linked instruments issued by Morgan Stanley or any of its affiliates that are not governed by U.S. law.
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
Contacts
Media Relations: Mark Lake, 212.762.0600
Investor Relations: Leslie Bazos, 212.761.5352