Chicago, March 11 – Lloyds Banking Group plc sold $2 billion of fixed-to-fixed rate notes (A2/BBB+/A) on Friday, according to multiple filings with the Securities and Exchange Commission.
The bank sold $1 billion of four-year notes with an initial 3.511% coupon. For the last year, the coupon will reset to Treasuries plus 160 basis points.
The notes are optionally redeemable on the reset date, March 18, 2025.
Pricing came at par and 160 bps above the relevant benchmark Treasury, 20 bps low to talk in the 180 bps area.
An equal-sized $1 billion tranche of six-year notes was also part of the deal. The notes start with a 3.75% coupon that converts in the final year to Treasuries plus 180 bps.
The notes are similarly optionally redeemable on the reset date, March 18, 2027.
Pricing on the spread was Treasuries plus 180 bps, and the notes also were sold at par. Price talk had the notes coming in the 195 bps to 200 bps area.
BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, LLC, Lloyds Securities Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are joint bookrunners.
Proceeds will be used for general corporate purposes.
Listing of the notes is expected on the New York Stock Exchange.
The retail and commercial bank is based in Edinburgh, Scotland, with operational headquarters in London.
| Issuer: | Lloyds Banking Group plc
|
| Amount: | $2 billion
|
| Issue: | Senior callable fixed-to-fixed rate notes
|
| Bookrunners: | BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, LLC, Lloyds Securities Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Co-managers: | BMO Capital Markets Corp., Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Davis Polk & Wardwell London LLP, CMS Cameron McKenna Nabarro Olswang LLP (Scottish)
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| Counsel to bookrunners: | Allen & Overy LLP
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| Trade date: | March 11
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| Settlement date: | March 18
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
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| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Four-year notes
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| Amount: | $1 billion
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| Maturity: | March 18, 2026
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| Coupon: | 3.511% starting rate; resets on March 18, 2025 at Treasuries plus 160 bps
|
| Price: | Par
|
| Yield: | 3.511%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | At par on March 18, 2025
|
| Price talk: | Treasuries plus 180 bps area
|
| Cusip: | 53944YAR4
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|
|
| Six-year notes
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| Amount: | $1 billion
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| Maturity: | March 18, 2028
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| Coupon: | 3.75% starting rate; resets on March 18, 2027 at Treasuries plus 180 bps
|
| Price: | Par
|
| Yield: | 3.75%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | At par on March 18, 2027
|
| Price talk: | Treasuries plus 195 bps to 200 bps area
|
| Cusip: | 53944YAS2
|
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