By Cristal Cody
Tupelo, Miss., Oct. 31 – Lloyds Banking Group plc priced a $4 billion two-tranche offering of senior callable fixed-to-floating rate notes (A3/BBB+/A+) on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $2.25 billion of 2.907% notes due 2023 at par to yield a spread of Treasuries plus 90 basis points. The notes tightened from initial price talk in the Treasuries plus 110 bps area.
The fixed rate notes will convert to a floating rate of Libor plus 81 bps from Nov. 7, 2022 until maturity.
Lloyds priced $1.75 billion of 3.574% notes due Nov. 7, 2028 at par to yield a Treasuries plus 120 bps spread, tighter than initial talk in the Treasuries plus 140 bps area. The notes will convert to a floating rate of Libor plus 120.5 bps from Nov. 7, 2027 until maturity.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Lloyds Securities Inc., Morgan Stanley & Co. LLC and Nomura Securities International, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
Lloyds is a bank and financial services group based in London.
| Issuer: | Lloyds Banking Group plc
|
| Amount: | $4 billion
|
| Description: | Senior callable fixed-to-floating rate notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Lloyds Securities Inc., Morgan Stanley & Co. LLC and Nomura Securities International, Inc.
|
| Co-manager: | National Bank of Canada Financial Inc.
|
| Trade date: | Oct. 31
|
| Settlement date: | Nov. 7
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Nov. 7, 2023
|
| Coupon: | 2.907%; converts to floating rate of Libor plus 81 bps from Nov. 7, 2022 to but excluding Nov. 7, 2023
|
| Price: | Par
|
| Yield: | 2.907%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Nov. 7, 2022 at par
|
| Price guidance: | Treasuries plus 110 bps area
|
|
|
| 11-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Nov. 7, 2028
|
| Coupon: | 3.574%; converts to a floating rate of Libor plus 120.5 bps from Nov. 7, 2027 to but excluding Nov. 7, 2028
|
| Price: | Par
|
| Yield: | 3.574%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Nov. 7, 2027 at par
|
| Price guidance: | Treasuries plus 140 bps area
|
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