Morgan Stanley raised $7.5bn via a three-part offering, joining jumbo bond issuances from peers JP Morgan and Bank of America. It raised:
- $2bn via a 3Y non-call 2Y (3NC2) fixed-to-floating bond at a yield 0.731%, or T+57bp, 13bp inside initial guidance of T+70bp area
- $3.5bn via a 6NC5 bond at a yield of 1.593%, or T+77bp, 18bp inside initial guidance of T+95bp area
- $2bn via a 21NC20 bond at a yield of 3.217%, or T+105bp, 15-20bp inside initial guidance of T+115/T+120bp area
The 3NC2 and 6NC5 bonds are callable at par within 1 month from maturity and the 21NC20s within 6 months from maturity. The 3NC2s have a make-whole call (MWC) on April 5, 2023 while the 6NC5s and 21NC20s have MWCs on May 4, 2026 and April 22, 2041 respectively. The bonds have expected ratings of A1/BBB+/A with proceeds going towards general corporate purposes. MS’s issuance comes after BofA and JPMorgan shattered bank issuance records with sizes of $15bn and $13bn respectively. The newly issued 2024s were priced 10bp wider than its 0.529% bonds due Jan 2024 yielding 0.63%.
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