By Wendy Van Sickle
Columbus, Ohio, July 31 – Lloyds Banking Group plc sold $2 billion of fixed-to-fixed rate notes and floating-rate notes (A3/BBB+/A) on Monday, according to two FWP filings with the Securities and Exchange Commission.
The bank sold $1.5 billion of three-year fixed-to-fixed rate notes with an initial 5.985% coupon. For the last year, the coupon will reset to Treasuries plus 148 basis points.
The notes are optionally redeemable on the reset date, Aug. 7, 2026.
Pricing came at par and 148 bps above the relevant benchmark Treasury.
A $500 million tranche of three-year floating-rate notes was also part of the deal. The floaters have a coupon of compounded average of daily SOFR plus 156 bps with a reset at quarterly intervals.
The notes are optionally redeemable on the reset date, Aug. 7, 2026.
Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc. (billing and delivery) and Scotia Capital (USA) Inc. 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: | Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc. (billing and delivery) and Scotia Capital (USA) Inc.
|
| Co-manager: | CIBC World Markets Corp.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Davis Polk & Wardwell LLP and CMS Cameron McKenna Nabarro Olswang LLP
|
| Counsel to underwriters: | Allen & Overy LLP
|
| Trade date: | July 31
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Fixed-to-fixed notes
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 7, 2027
|
| Coupon: | 5.985% starting rate; resets on Aug. 7, 2026 to fixed rate equal to Treasuries plus 148 bps
|
| Price: | Par
|
| Yield: | 5.985%
|
| Spread: | Treasuries plus 148 bps
|
| Call features: | At par on Aug. 7, 2026
|
| Cusip: | 539439AY5
|
|
|
| Floating-rate notes
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| Amount: | $500 million
|
| Maturity: | Aug. 7, 2027
|
| Coupon: | SOFR plus 156 bps
|
| Price: | Par
|
| Yield: | SOFR plus 156 bps
|
| Call features: | At par on Aug. 7, 2026
|
| Cusip: | 53944YAW3
|
|
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