Lloyds Banking sets pricing in any and all tender for five note series

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – Lloyds Banking Group plc announced pricing of its any and all tender offer for five series of its notes.

Pricing was set at 11 a.m. ET on Nov. 3 using a fixed spread above the relevant U.S. Treasury note.

According to a company announcement, the total consideration per $1,000 principal amount is as follows for each series:

• For its $1 billion 1.75% notes due 2018 (Cusip: 53944VAC3), $1,004.38, set using the 0.75% U.S. Treasury note due Sept. 30, 2018 plus 60 basis points;

• For its $1.25 billion 1.75% notes due 2018 (Cusip: 53944VAG4), $1,004.90, set using the 0.75% U.S. Treasury note due Sept. 30, 2018 plus 60 bps;

• For its $1 billion 2.35% notes due 2019, $1,018.82, set using the 1% U.S. Treasury note due Oct. 15, 2019 plus 70 bps;

• For its $1 billion 2.4% notes due 2020, $1,020.21, set using the 1.125% U.S. Treasury note due Sept. 30, 2021 plus 50 bps; and

• For its $1.25 billion 3.5% notes due 2025, $1,067.41, set using the 1.5% U.S. Treasury note due Aug. 15, 2026 plus 80 bps.

The any and all tender offer expires at 5 p.m. ET on Nov. 3.

Lloyds will also pay accrued interest to but excluding settlement for each series of notes.

Settlement is expected to occur on Nov. 8.

Lloyds announced the tender offer along with a separate a maximum tender offer for up to $2 billion of eight other series of its notes and two exchange offers for eight series of its notes on Oct. 27.

The maximum tender offer expires at 11:59 p.m. on Nov. 25.

Pricing will be set at 11 a.m. ET on Nov. 10.

Early settlement is expected to occur on Nov. 15 and final settlement on Nov. 30.

The offers are not conditioned on any minimum amount of notes being tendered but are subject to some other conditions.

Lloyds said it launched the tender offers “in order to provide the holders of the notes with an opportunity to have their notes repurchased while maintaining a prudent approach to funding and liquidity as part of the group's ongoing liability management.”

The exchange offers expired at 11 a.m. ET on Nov. 4.

The tender and exchange agent is Lucid Issuer Services Ltd. (attn: David Shilson/Arlind Bytyqi, +44 20 7704 0880 or lloydsbank@lucid-is.com).

The global coordinator is Lloyds Bank (855 400-6511, 212 827-3105, +44 20 7158 2720 or liability.management@lloydsbanking.com).

The joint dealer managers of the tender offers are BNP Paribas (888 210-4358, 212 841-3059, +44 20 7595 8668 or liability.management@bnpparibas.com), Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955, +44 20 7545 8011 or liability.management@db.com) and UBS Ltd. (888 719-4210, 203 719-4210, +44 20 7568 2133 or ol-liabilitymanagement-eu@ubs.com).

The banking and financial services company is based in London.

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