By Cristal Cody
Chicago, Feb. 10 – Nationwide Building Society priced $1.05 billion of new paper in a two-part transaction on Wednesday with both tranches due Feb. 16, 2028 (Baa1/BBB+/A), according to a report from a market source.
The company sold $300 million of six-year floating-rate notes with a coupon based on SOFR plus 129 basis points.
The fixed-to-floating rate part of the pair priced out as $750 million of 2.972% notes. The Treasuries plus 117 bps spread was 23 bps lower than talk in the 140 bps area.
The coupon will convert to the same SOFR plus 129 bps rate as the floating-rate tranche for the final year.
Both parts come with five years of call protection.
Barclays, JPMorgan, Morgan Stanley and UBS were listed as bookrunners for the Rule 144A and Regulation S deal.
The mutual financial company and building society is based in Swindon, England.
| Issuer: | Nationwide Building Society
|
| Amount: | $1.05 billion
|
| Issue: | Senior non-preferred notes
|
| Maturity: | Feb. 16, 2028
|
| Bookrunners: | Barclays, JPMorgan, Morgan Stanley and UBS
|
| Call features: | Five years
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 16
|
|
|
| Floaters
|
| Amount: | $300 million
|
| Issue: | Floating-rate notes
|
| Coupon: | SOFR plus 129 bps
|
| Price: | Par
|
| Cusips: | 63861VAG2, 63861WAG0
|
|
|
| Fixed-to-floaters
|
| Amount: | $750 million
|
| Issue: | Fixed-to-floating-rate notes
|
| Coupon: | 2.972% initial rate; converts to SOFR plus 129 bps on Feb. 16, 2027
|
| Price: | Par
|
| Yield: | 2.972%
|
| Spread: | Treasuries plus 117 bps
|
| Price talk: | Treasuries plus 140 bps area
|
| Cusips: | 63861VAF4, 63861WAF2
|
|
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