Replacement Rate for U.S. Law-Governed U.S. Dollar LIBOR-Linked Preferred Stock (and Related Depositary Shares), Debt Securities and Certificates of Deposit

BY Business Wire | ECONOMIC | 04/28/23 05:18 PM EDT

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley (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 (MS) 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
Adjustment

1 Month

? ?

0.11448%

3 Months

? ?

0.26161%

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 (MS) 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.

Morgan Stanley-Issued Preferred Stock (and Related Depositary Shares)

CUSIP

?

Description

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%)

61761J406

?

Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (and related depositary shares) (6.375%)

61762V606

?

Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K (and related depositary shares) (5.850%)

61762VAA9

?

Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series M (5.875%)

Morgan Stanley-Issued Debt Securities

CUSIP

?

Description

61744YAK4

?

Global Medium-Term Notes, Series I, Fixed/Floating Rate Senior Notes Due 2028 (3.591%)

61744YAL2

?

Global Medium-Term Notes, Series I, Fixed/Floating Rate Senior Notes Due 2038 (3.971%)

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 (MS) or any of its affiliates that are not governed by U.S. law.

Morgan Stanley (MS) 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 (MS), please visit www.morganstanley.com.

Source: Morgan Stanley (MS)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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