By Cristal Cody
Tupelo, Miss., March 1 – Nationwide Building Society priced $1.75 billion of senior non-preferred medium-term fixed-to-floating rate notes (Baa1/BBB+/A) in two tranches on Thursday, according to a market source.
The notes were priced in a Rule 144A and Regulation S offering.
The company sold $1 billion of 3.766% six-year notes at a spread of 120 basis points over Treasuries. The notes were initially talked to price with a spread in the Treasuries plus 125 bps to 130 bps area.
The interest rate will reset to a floating rate equal to Libor plus an undisclosed spread on the optional redemption date of March 8, 2023.
The notes are non-callable for five years.
Nationwide Building Society also sold $750 million of 4.302% 11-year notes with a 150 bps spread over Treasuries. Initial spread guidance on the notes was in the Treasuries plus 155 bps to 160 bps area.
The interest rate on the notes will reset to a floating rate equal to Libor plus an undisclosed spread at the March 8, 2028 optional redemption date.
The issue is non-callable for 10 years.
The bookrunners for the 2024 notes were BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Barclays and BofA Merrill Lynch.
BNP Paribas, Citigroup, JPMorgan, UBS Securities, Barclays and Morgan Stanley & Co. LLC were the bookrunners on the 2029 notes.
The mutual financial company and building society is based in Swindon, England.
| Issuer: | Nationwide Building Society
|
| Amount: | $1.75 billion
|
| Description: | Senior non-preferred medium-term fixed-to-floating rate notes
|
| Trade date: | March 1
|
| Settlement date: | March 8
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Six-year notes
|
| Amount: | $1 billion
|
| Description: | Senior non-preferred medium-term fixed-to-floating rate notes
|
| Maturity: | March 8, 2024
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Barclays and BofA Merrill Lynch
|
| Coupon: | 3.766%; resets March 8, 2023 to a floating rate at Libor plus a spread
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Non-callable for five years
|
| Price guidance: | Treasuries plus 125 bps-130 bps area
|
|
|
| 11-year notes
|
| Amount: | $750 million
|
| Description: | Senior non-preferred medium-term fixed-to-floating rate notes
|
| Maturity: | March 8, 2029
|
| Bookrunners: | BNP Paribas, Citigroup, JPMorgan, UBS Securities, Barclays and Morgan Stanley & Co. LLC
|
| Coupon: | 4.302%; resets March 8, 2028 to a floating rate at Libor plus a spread
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Non-callable for 10 years
|
| Price guidance: | Treasuries plus 155 bps-160 bps area
|
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