Morgan Stanley Announces Pricing of $2.2 Billion Common Stock Offering

June 2, 2009 -- New York -- Morgan Stanley (NYSE: MS) today announced that it has priced a public offering of approximately 80.2 million shares of common stock to the public at $27.44 per share for total gross proceeds of approximately $2.2 billion. The underwriter will have a 30-day option to purchase approximately up to an additional 4.0 million shares of common stock from Morgan Stanley.

China Investment Corporation has agreed to purchase 44.7 million shares of common stock at the public offering price. In addition, Mitsubishi UFJ Financial Group, Inc. (MUFG) has agreed to purchase 16.0 million shares of common stock at the public offering price. The closing of the MUFG purchase will occur a few days after the closing of the public offering upon the effectiveness of the registration of the offering with the Financial Services Agency of Japan.

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While approval for repayment has not been granted, Morgan Stanley believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to redeem it before the end of June.

[Editor's note: More information via a separate release:]

Morgan Stanley (NYSE: MS) announced today that it intends to raise $2.2 billion in common equity to satisfy a supervisory condition to enable it to redeem TARP (Troubled Asset Relief Program) preferred capital. While approval for repayment has not been granted, Morgan Stanley believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to redeem it before the end of June. The offering is expected to include China Investment Corporation and Mitsubishi UFJ Financial Group, Inc.

Source: Morgan Stanley (NYSE: MS)