By Cristal Cody
Tupelo, Miss., June 12 – Lloyds Banking Group plc priced $500 million of fixed-rate reset additional tier 1 perpetual subordinated contingent convertible securities (Baa3/BB-/BB+) on Wednesday at par to yield 6.75%, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 7.25% area.
The securities priced with a spread of 481.5 basis points over Treasuries.
J.P. Morgan Securities LLC, Lloyds Securities Inc., Morgan Stanley & Co. LLC and UBS Securities LLC were the bookrunners.
The rate will reset June 27, 2026 and every following fifth year.
The securities are callable June 27, 2026 and every five years thereafter.
Lloyds Banking Group is a bank and financial services company based in London.
| Issuer: | Lloyds Banking Group plc
|
| Amount: | $500 million
|
| Description: | Fixed-rate reset additional tier 1 perpetual subordinated contingent convertible securities
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC, Lloyds Securities Inc., Morgan Stanley & Co. LLC and UBS Securities LLC
|
| Coupon: | 6.75%; resets June 27, 2026 and every fifth year thereafter
|
| Price: | Par
|
| Yield: | 6.75%
|
| Spread: | Treasuries plus 481.5 bps
|
| Call feature: | June 27, 2026 and every five years thereafter at par
|
| Trade date: | June 12
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: A3
|
| S&P: BB-
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price guidance: | 7.25% area
|
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