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

Rhea-AI Summary

Morgan Stanley announced the complete redemption of its Series J Fixed-to-Floating Rate Non-Cumulative Preferred Stock and corresponding Depositary Shares, effective April 15, 2021. Each Series J Depositary Share, with a liquidation preference of $25,000 per share, will be redeemed at $1,000. This does not include the previously declared dividend of $10.12813 per share, payable to holders of record on the redemption date. Following the redemption, the shares will no longer be deemed outstanding, and dividends will cease to accrue.

Positive

• Redemption of Series J Depositary Shares indicates effective capital management.

Negative

• Redemption could limit future dividend payments for investors holding Series J Depositary Shares.

Morgan Stanley today announced that it will redeem in whole its outstanding Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J, liquidation preference $25,000 per share (617474309) (the “Series J Preferred Stock”), and the depositary shares, each representing a 1/25th ownership interest in a share of Series J Preferred Stock (CUSIP 617474AA9) (the “Series J Depositary Shares”), on April 15, 2021 pursuant to the optional redemption provisions provided in the documents governing such Series J Preferred Stock and Series J Depositary Shares. The redemption price per Series J Depositary Share will be $1,000. Such redemption price does not include the declared dividend payment of $10.12813 per Series J Depositary Share that 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 J Depositary Shares will no longer be deemed outstanding and dividends shall cease to accrue on the Series J Depositary Shares.

The Series J 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 J Depositary Shares.

This press release does not constitute a notice of redemption under the certificate of designation governing the Series J Preferred Stock or the deposit agreement governing the Series J 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/20210315005635/en/

FAQ

When is Morgan Stanley redeeming its Series J Preferred Stock?

Morgan Stanley will redeem its Series J Preferred Stock on April 15, 2021.

What is the redemption price for the Series J Depositary Shares?

The redemption price for the Series J Depositary Shares will be $1,000 each.

Will there be any dividends after the redemption of the Series J Depositary Shares?

Dividends will cease to accrue on the Series J Depositary Shares after the redemption date.

What dividend is payable on the Series J Depositary Shares on redemption date?

A declared dividend of $10.12813 per Series J Depositary Share will be payable on the redemption date.

Who is the depositary for the Series J Depositary Shares?

The Bank of New York Mellon is the depositary and redemption agent for the Series J Depositary Shares.