By Marisa Wong and Cristal Cody
Los Angeles, Sept. 6 – Sumitomo Mitsui Financial Group, Inc. priced $2 billion of senior notes (expected: A1/A-) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission and details from a market source.
SMFG priced $1.1 billion of 5.716% five-year senior notes at par with a spread of 135 basis points over Treasuries.
The company also priced $900 million of 5.808% 10-year senior notes at par with a spread of 155 bps over Treasuries.
Talk was in the Treasuries plus 165 bps area for the 2028 notes and Treasuries plus 185 bps area for the 2033 notes, according to a market source.
For both series, notes are only callable if certain changes occur in tax law.
SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, Jefferies LLC and BofA Securities, Inc. are the joint lead managers and joint bookrunners.
The issuer intends to use proceeds to extend unsecured loans, intended to qualify as internal TLAC, to Sumitomo Mitsui Banking Corp., and SMBC intends to use the proceeds of the loans for general corporate purposes.
The bank holding company for SMBC is based in Tokyo.
| Issuer: | Sumitomo Mitsui Financial Group, Inc.
|
| Amount: | $2 billion
|
| Issue: | Senior notes
|
| Bookrunners: | SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, Jefferies LLC and BofA Securities, Inc.
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Nomura Securities International, Inc., Daiwa Capital Markets America Inc., HSBC Securities (USA) Inc., AmeriVet Securities, Inc., Great Pacific Securities, Loop Capital Markets LLC and R. Seelaus & Co., LLC
|
| Stabilization manager: | SMBC Nikko Securities America, Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Davis Polk & Wardwell LLP and Nagashima Ohno & Tsunematsu
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Call option: | Only upon occurrence of certain changes in tax law
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 14
|
| Listing: | Luxembourg
|
| Expected ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2028 notes
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| Amount: | $1.1 billion
|
| Maturity: | Sept. 14, 2028
|
| Coupon: | 5.716%
|
| Price: | Par
|
| Yield: | 5.716%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 165 bps area
|
| Cusip: | 86562MDG2
|
|
|
| 2033 notes
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| Amount: | $900 million
|
| Maturity: | Sept. 14, 2033
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| Coupon: | 5.808%
|
| Price: | Par
|
| Yield: | 5.808%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 185 bps area
|
| Cusip: | 86562MDJ6
|
|
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