By Marisa Wong and Cristal Cody
Los Angeles, March 12 – ING Groep NV priced $3 billion of callable fixed-to-floating rate senior notes (Baa1/A-/A+) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
ING priced $1.5 billion of 5.335% notes due 2030 at par with a spread of 125 basis points over Treasuries. The coupon resets after five years to SOFR plus 144 bps. Initial price talk was in the Treasuries plus 155 bps area, with guidance set at Treasuries plus 125 bps.
The second tranche consisted of $1.5 billion of 5.55% notes due 2035 priced at par with a spread over Treasuries of 145 bps. The coupon resets after 10 years to SOFR plus 177 bps. Initial price talk was in the Treasuries plus 175 bps area, with guidance set at Treasuries plus 145 bps.
Each of the notes will have a one-time optional call when the rate resets initially. Rates will then reset quarterly.
BofA Securities Inc. (billing and delivery), Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., ING Financial Markets LLC, Scotia Capital (USA) Inc., Standard Chartered Bank AG and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The financial services company is based in Amsterdam.
| Issuer: | ING Groep NV
|
| Amount: | $3 billion
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| Issue: | Fixed-to-floating rate senior notes
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| Bookrunners: | BofA Securities Inc. (billing and delivery), Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., ING Financial Markets LLC, Scotia Capital (USA) Inc., Standard Chartered Bank AG and Wells Fargo Securities, LLC
|
| Co-lead managers: | BMO Capital Markets Corp., CIBC World Markets Corp., Desjardins Securities Inc. and TD Securities (USA) LLC
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| Trustee: | Bank of New York Mellon, London Branch
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| Counsel to issuer: | Sullivan & Cromwell LLP (New York law) and Linklaters LLP (Dutch law)
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| Counsel to underwriters: | Davis Polk & Wardwell London LLP
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| Trade date: | March 11
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| Settlement date: | March 19
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: A+
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| 2030 notes
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| Amount: | $1.5 billion
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| Maturity: | March 19, 2030
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| Coupon: | 5.335%; resets quarterly after five years to SOFR plus 144 bps
|
| Price: | Par
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| Yield: | 5.335%
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| Spread: | Treasuries plus 125 bps
|
| Call options: | In whole at par on March 19, 2029; clean-up call at par if 75% or more of the notes have been redeemed or purchased; in whole at par upon loss absorption disqualification event
|
| Price talk: | Initial price talk in Treasuries plus 155 bps area, with guidance set at Treasuries plus 125 bps
|
| Cusip: | 456837BL6
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|
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| 2035 notes
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| Amount: | $1.5 billion
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| Maturity: | March 19, 2035
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| Coupon: | 5.55%; resets quarterly after 10 years to SOFR plus 177 bps
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| Price: | Par
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| Yield: | 5.55%
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| Spread: | Treasuries plus 145 bps
|
| Call option: | In whole at par on March 19, 2034; clean-up call at par if 75% or more of the notes have been redeemed or purchased; in whole at par upon loss absorption disqualification event
|
| Price talk: | Initial price talk in the Treasuries plus 175 bps area, with guidance set at Treasuries plus 145 bps
|
| Cusip: | 456837BM4
|
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