By Wendy Van Sickle
Columbus, Ohio, March 6 – Lloyds Banking Group plc priced $1.25 billion of 8% fixed-rate reset additional tier 1 perpetual subordinated contingent convertible securities (Baa3/BB-/BBB-) on Monday at par, according to an FWP filing with the Securities and Exchange Commission.
BofA Securities, Inc., Lloyds Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.
The rate will reset March 27, 2030 and every following fifth year at a rate equal to 391.3 basis points over Treasuries.
The securities are callable Sept. 27, 2029 until the first reset date and any day in the six months prior to a subsequent reset date.
Proceeds will be used for general corporate purposes, including to repurchase or refinance existing debt and/or existing capital securities.
Lloyds Banking Group is a bank and financial services company based in London.
| Issuer: | Lloyds Banking Group plc
|
| Amount: | $1.25 billion
|
| Issue: | Fixed-rate reset additional tier 1 perpetual subordinated contingent convertible securities
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Securities, Inc., Lloyds Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Trustee: | Bank of New York Mellon, London Branch
|
| Counsel to issuer: | Davis Polk & Wardwell London LLP and CMS Cameron McKenna Nabarro Olswang LLP
|
| Counsel to underwriters: | Allen & Overy LLP
|
| Coupon: | 8%; resets March 27, 2030 and every fifth year thereafter at Treasuries plus 391.3 bps
|
| Price: | Par
|
| Spread: | 391.3 bps over Treasuries
|
| Call feature: | Sept. 27, 2029 until first rest date and during six months prior to any subsequent reset date
|
| Trade date: | March 6
|
| Settlement date: | March 13
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Cusip: | 53944YAV5
|
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