Societe Generale plans to price 20-year callable CMS spread notes

By Susanna Moon

Chicago, Sept. 12 - Societe Generale plans to price callable CMS spread notes due Sept. 30, 2033 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a term sheet.

Interest will be 11% for the first year. After that, it will accrue at four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, up a maximum rate of 11%. Interest will be payable semiannually and cannot be less than zero.

The payout at maturity will be par.

The notes are callable at par on any interest payment date beginning in September 2014.

SG Americas Securities, LLC is the agent. Advisors Asset Management, Inc. is distributor.

The notes will price on Sept. 25 and settle on Sept. 30.

The Cusip number is 83368WEL1.

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