Terms

Series

6.500% Non-Cumulative Preferred Stock, Series P

Liquidation Preference

$25.00

Coupon Rate

6.5%

Rate Type

Fixed

Annual Dividend

$1.62

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 15, 2027

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Indebtedness And Non-Equity Claims On Morgan Stanley, Any Class Or Series Of Capital Stock Expressly Stated To Be Senior To Series P Preferred Stock, Obligations Of Subsidiaries (Structural Subordination As Holding Company); Pari Passu With: Series A Preferred Stock, Series C Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series I Preferred Stock, Series K Preferred Stock, Series L Preferred Stock, Series M Preferred Stock, Series N Preferred Stock, Series O Preferred Stock, Any Other Preferred Stock Not Expressly Senior Or Junior; Senior To: Common Stock, Any Class Or Series Of Capital Stock Expressly Stated To Be Junior To Series P Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

40,000,000

Prospectus Summary

Morgan Stanley is offering 40,000,000 depositary shares, each representing a 1/1,000th interest in a share of its perpetual 6.500% Non-Cumulative Preferred Stock, Series P (CUSIP 61762V853), with a liquidation preference of $25 per depositary share. The fixed 6.500% annual coupon translates to $0.40625 per depositary share per quarter, paid on January 15, April 15, July 15, and October 15, commencing October 15, 2022. Critically, dividends are non-cumulative: if the Board does not declare a dividend for any period, that amount is permanently foregone and holders have no claim to it in future periods. Series P sits senior to Morgan Stanley's common stock and any expressly junior preferred, and pari passu with nine existing preferred series (Series A, C, E, F, I, K, L, M, N, and O). As a holding company obligation, it is structurally subordinated to all liabilities of Morgan Stanley's operating subsidiaries — including its broker-dealer and bank units — whose creditors have prior claims on subsidiary assets. The Series P is also junior to all of Morgan Stanley's own debt and non-equity obligations. A regulatory call provision allows full redemption within 90 days if a 'Regulatory Capital Treatment Event' occurs — i.e., if a change in law or regulation causes Morgan Stanley to reasonably conclude that Series P will no longer fully qualify as Additional Tier 1 capital under Federal Reserve guidelines, potentially triggering an early call before the October 15, 2027 optional redemption date. At the $25 offering price, the effective yield at par is 6.50% annually. Dividends on Series P qualify for the corporate dividends-received deduction (DRD), and while QDI treatment for individual holders is not explicitly confirmed, it is typical for Morgan Stanley C-corp preferred dividends. The record date falls on the 15th calendar day before each payment date. The dividend stopper prevents any payment on common stock or other junior securities in a period where Series P's most recently completed dividend has not been paid in full — but since dividends are non-cumulative and discretionary, the Board retains full flexibility to omit them without triggering a default, making payment continuity dependent on the Board's ongoing declaration.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Morgan Stanley has not paid full dividends on Series P for the latest completed period, it cannot pay dividends on or repurchase common stock or other junior securities; conversely, if dividends on any senior-ranking preferred are in arrears, Morgan Stanley cannot pay dividends on Series P until those senior arrears are cleared.

Other Preferreds from Morgan Stanley

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 51 (Average)