Funds News

Morgan Stanley to sell $5.25 bln in notes Wednesday-IFR

NEW YORK, Nov 26 (Reuters) - Morgan Stanley MS.N is expected to sell $5.25 billion of 2-year and 3-year notes in a three-part deal backed by the Federal Deposit Insurance Corp later Wednesday, according to IFR, a Thomson Reuters publication.

The bank will offer $2.25 billion of 2-year fixed-rate notes, with price guidance indicating a range of midswaps plus 80 basis points, said IFR.

It will offer a second tranche of $2.5 billion of 3-year fixed-rate notes, expected to be priced at midswaps plus 85 basis points. The bank will offer a third tranche of $500 million 3-year floating-rate notes at the 3-month London Interbank Offer Rate plus 85 basis points.

The offer is being made under the government’s Temporary Liquidity Guarantee Program, which offers FDIC backing for bond issues of no longer than three years for financial institutions. (Reporting by Ciara Linnane; Editing by Theodore d’Afflisio)