Lloyds prices tender offer for 2.35% notes, 2.4% notes, 3.5% notes

By Angela McDaniels

Tacoma, Wash., June 19 – Lloyds Bank plc set pricing in the tender offer for its $466,152,000 of 2.35% senior notes due 2019, $466,899,000 of 2.4% senior notes due 2020 and $515,222,000 of 3.5% senior notes due 2025, according to a filing with the London Stock Exchange.

Each series of notes is guaranteed by Lloyds Banking Group plc.

Per $1,000 principal amount, the company will pay $1,008.34 for the 2.35% notes, $1,009.03 for the 2.4% notes and $1,043.90 for the 3.5% notes.

Holders will also receive accrued interest up to but excluding the settlement date.

The purchase price for each series of notes is equal to an amount that reflects, as of the settlement date, a yield to maturity equal to the sum of the reference yield plus a fixed spread.

The reference Treasury is the 1.25% Treasury due May 31, 2019 for the 2.35% notes, the 1.5% Treasury due May 15, 2020 for the 2.4% notes and the 2.375% Treasury due May 15, 2017 for the 3.5% notes.

The fixed spread is 60 basis points for the 2.35% notes, 55 bps for the 2.4% notes and 70 bps for the 3.5% notes.

The offer will expire at 5 p.m. ET on June 20, and the settlement date is expected to be June 23.

The offer is not conditioned on any minimum amount of notes being tendered.

The group said the purpose of the offer is to provide the noteholders with an opportunity to have their notes repurchased while maintaining a prudent approach to the management of the group’s funding and liquidity base.

The group said it envisages focusing on modest incremental senior issuance from Lloyds Banking Group.

Going forward, the group will continue to assess issuance opportunities for senior debt from both Lloyds Bank and Lloyds Banking Group to meet the group’s annual wholesale funding requirements. The offer is not conditioned on any such future capital markets issuance activity, but the group reserves the right to issue new debt securities from time to time, including during the term of the offer.

Concurrently with the offer, the group launched a capped tender offer for some of Lloyds Bank’s outstanding euro- and pound sterling-denominated debt securities. This offer is not open to U.S. residents.

The dealer manager is Lloyds Securities Inc. (855 400-6511, 212 827-3105 or liability.management@lloydsbanking.com).The tender agent is Lucid Issuer Services Ltd. (lloydsbank@lucid-is.com, + 44 20 7704 0880 or https://portal.lucid-is.com).

Lloyds is a bank and financial services group based in London.

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