A Morgan Stanley private credit fund sold investment-grade bonds to refinance debt, its first offering in just over a year.
Morgan Stanley Direct Lending Fund raised $350 million from a five-year note, matching its target size, according to a person with direct knowledge of the matter. The deal will yield 2.20 percentage points above Treasuries or about 25 basis points lower than initial price talk, the person added, asking not to be identified because they’re not allowed to speak publicly.
The business development company issued the same amount of bonds in May 2025, before the sector came under heightened scrutiny from investors concerned about loan quality and software borrowers at risk of disruption from artificial intelligence.
The ability of BDCs to sell high-grade notes has remained mostly intact this year. A T. Rowe Price Group Inc. private credit fund raised $400 million last week in its inaugural sale, with peak demand more than three times the offering’s size.
Proceeds from the Morgan Stanley fund’s new bonds will refinance existing borrowings that may include revolving credit facilities with Truist Financial Corp. and BNP Paribas SA, according to an exchange filing.
Written by: Brian W Smith @Bloomberg
The post “Morgan Stanley Private Credit Fund Sells $350 Million Bond” first appeared on Bloomberg