Published on 8/12/2016 in the Prospect News Investment Grade Daily.
New Issue: Standard Chartered sells $2 billion 7.5% fixed-rate resetting perpetual securities
By Lisa Kerner
Charlotte, N.C., Aug. 12 – Standard Chartered plc priced $2 billion fixed-rate resetting perpetual subordinated contingent convertible securities at par on Friday.
The notes will bear interest at 7.5% from the Aug. 18 issue date up to, but excluding, April 2, 2022, after which it will reset on that date and every five years thereafter to the interpolated mid-swap rate plus 630.1 basis points, according to a news release.
Standard Chartered Bank is the structuring adviser.
Joint bookrunners are Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Societe Generale, Standard Chartered Bank and UBS Securities LLC.
Proceeds will be used for general business purposes of the group and to strengthen the regulatory capital base of the group.
The company has applied for listing on the Stock Exchange of Hong Kong Ltd.
Standard Chartered is a bank and financial services company based in London.
| Issuer: | Standard Chartered plc
|
| Amount: | $2 billion
|
| Maturity: | Perpetual
|
| Description: | Fixed-rate resetting perpetual subordinated contingent convertible securities
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Societe Generale, Standard Chartered Bank, UBS Securities LLC
|
| Co-managers: | ABN Amro Securities (USA) LLC, Banco Bilbao Vizcaya Argentaria, SA, Commerz Markets LLC, Emirates NBD PJSC, Maybank Investment Bank Bhd., Natixis Securities Americas LLC, QNB Capital LLC, RBS Capital Markets, LLC, United Overseas Bank Ltd.
|
| Coupon: | 7.5% from the issue date up to, but excluding, April 2, 2022; coupon resets every five years thereafter at interpolated mid-swap rate plus 630.1 bps
|
| Price: | Par
|
| Conversion price: | $7.732
|
| Conversion trigger: | Convertible into stock any time the CET 1 ratio is less than 7%
|
| Call: | On any coupon reset date at par plus accrued interest
|
| Ratings: | Moody’s: Ba1
|
| Standard & Poor’s: BB-
|
| Fitch: BBB-
|
| Pricing date: | Aug. 12
|
| Settlement date: | Aug. 18
|
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