Morgan Stanley’s $2 Billion Fixed-to-Floating-Rate Senior Notes Offering

Davis Polk advised Morgan Stanley in connection with its SEC-registered global offering of $2 billion aggregate principal amount of fixed-to-floating-rate senior notes due 2025.

During the floating interest rate period, the notes bear interest by reference to the Secured Overnight Financing Rate (“SOFR”), compounded daily over each quarterly interest payment period. The SOFR compounding mechanics are based on those published by ISDA, while the waterfall of benchmark replacements and related adjustments that would apply upon a discontinuation of SOFR are based on the Alternative Reference Rates Committee’s recommended fallback language. The lead manager for the underwriters was Morgan Stanley & Co. LLC.

The Davis Polk corporate team included partner Christopher S. Schell (Picture), counsel Vidal Vanhoof and associate Jack A. Liechtung. The tax team included partner Po Sit, counsel Alon Gurfinkel and associates Andrew A. Smith and Sunny Kim. Partner Gregory S. Rowland, counsel Sarah E. Kim and associate Sijia Cai provided 1940 Act advice.

Involved fees earner: Sijia Cai – Davis Polk & Wardwell; Alon Gurfinkel – Davis Polk & Wardwell; Sunny Kim – Davis Polk & Wardwell; Sarah Kim – Davis Polk & Wardwell; Jack Liechtung – Davis Polk & Wardwell; Gregory Rowland – Davis Polk & Wardwell; Christopher Schell – Davis Polk & Wardwell; Po Sit – Davis Polk & Wardwell; Andrew Smith – Davis Polk & Wardwell; Vidal Vanhoof – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Morgan Stanley;

Author: Ambrogio Visconti