Morgan Stanley Announces Redemption in Whole of Series H Preferred Stock and Depositary Shares Representing Series H Preferred Stock

Rhea-AI Summary

Morgan Stanley announced the full redemption of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series H, with a liquidation preference of $25,000 per share, effective January 18, 2022. The redemption price for each Series H Depositary Share is set at $1,000, excluding any dividend that may be declared. After the redemption date, the Series H Depositary Shares will cease to accrue dividends and will no longer be considered outstanding. The redemption will be managed by The Bank of New York Mellon as the depositary.

Positive

• Full redemption of Series H Preferred Stock may enhance the capital structure of Morgan Stanley.
• Redemption of preferred stock can potentially lead to improved earnings per share for common shareholders.

Negative

• Redeeming preferred stock can decrease liquidity if the company uses cash reserves.
• Investors may lose dividend income from the Series H Depositary Shares.

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley today announced that it will redeem in whole its outstanding Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series H, liquidation preference $25,000 per share (61761J208) (the “Series H Preferred Stock”), and the depositary shares, each representing a 1/25th ownership interest in a share of Series H Preferred Stock (CUSIP 61761JQK8) (the “Series H Depositary Shares”), on January 18, 2022 pursuant to the optional redemption provisions provided in the documents governing such Series H Preferred Stock and Series H Depositary Shares. The redemption price per Series H Depositary Share will be $1,000. Such redemption price does not include the dividend payment that, if declared, will be payable on the redemption date in the ordinary course to holders of record on the record date for such dividend payment.

Beginning on the redemption date, the Series H Depositary Shares will no longer be deemed outstanding and dividends shall cease to accrue on the Series H Depositary Shares. The Series H Depositary Shares are held through The Depository Trust Company (“DTC”) and will be redeemed in accordance with DTC procedures.

The Bank of New York Mellon, 240 Greenwich Street, 7E, New York, New York 10286, is the depositary and the redemption agent for the Series H Depositary Shares.

This press release does not constitute a notice of redemption under the certificate of designation governing the Series H Preferred Stock or the deposit agreement governing the Series H Depositary Shares.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211119005679/en/

Media Relations: Wesley McDade, 212.761.2430

Investor Relations: Leslie Bazos, 212.761.5352

Source: Morgan Stanley

FAQ

When is Morgan Stanley redeeming its Series H Preferred Stock?

Morgan Stanley is redeeming its Series H Preferred Stock on January 18, 2022.

What is the redemption price for Morgan Stanley's Series H Depositary Shares?

The redemption price for each Series H Depositary Share is $1,000.

What will happen to the Series H Depositary Shares after the redemption date?

After the redemption date, the Series H Depositary Shares will no longer be deemed outstanding, and dividends will cease to accrue.

Who is managing the redemption of Morgan Stanley's Series H Depositary Shares?

The redemption is being managed by The Bank of New York Mellon.

Will there be any dividend payments after the redemption date for Series H Depositary Shares?

No, dividends will cease to accrue on the Series H Depositary Shares after the redemption date.