New Issue: Barclays prices $4 billion fixed-to-floating resetting senior notes

By Cristal Cody

Chicago, May 3 – Barclays plc priced $4 billion of fixed-to-floating rate resetting senior callable notes over two tranches (Baa1/BBB/A) on Tuesday, according to FWP filings with the Securities and Exchange Commission and additional information from a market source.

Each tranche was $2 billion, and both tranches priced at par.

The four-year tranche will start with a 5.829% fixed interest rate that will convert to a floating rate on May 9, 2026. During the floating-rate period, interest will be at compounded daily SOFR plus 221 basis points, with quarterly resets. The notes priced at Treasuries plus 215 bps against talk in the 230 bps area.

The four-year tranche may be redeemed with a 35 bps make-whole discount factor starting Nov. 9, 2023 to May 9, 2026 or at par on May 9, 2026.

The 11-year tranche will begin with interest at 6.224%. The interest rate resets starting May 9, 2033, one year before the maturity date. Quarterly resets will be at compounded daily SOFR plus 298 bps. Pricing at par, the notes came at Treasuries plus 280 bps after talk had them coming in the 295 bps area.

Like the first tranche, the notes are callable with a make-whole premium starting Nov. 9, 2023. The make-whole discount factor is 45 bps. The make-whole call period ends on May 9, 2033 when the notes can be redeemed at par.

The sole bookrunner is Barclays.

The notes will be listed on the New York Stock Exchange.

The investment bank and financial services company is based in London.

Issuer:	Barclays plc
Amount:	$4 billion
Issue:	Fixed-to-floating rate resetting senior callable notes
Bookrunner:	Barclays
Trade date:	May 2
Settlement date:	May 9
Ratings:	Moody’s: Baa1
	S&P: BBB
	Fitch: A
Distribution:	SEC registered
Four-year notes
Amount:	$2 billion
Maturity:	May 9, 2027
Senior co-managers:	BBVA Securities Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., Commerz Markets LLC, Intesa Sanpaolo SpA, J.P. Morgan Securities LLC, Lloyds Securities Inc., MUFG Securities Americas Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC
Co-managers:	American Veterans Group, PBC, Bancroft Capital, LLC, Cabrera Capital Markets LLC, Capital One Securities, Inc., Drexel Hamilton, LLC, Independence Point Securities LLC
Coupon:	5.829% initial rate; resets to daily SOFR plus 221 bps starting May 9, 2026
Price:	Par
Yield:	5.829%
Spread:	Treasuries plus 215 bps
Call features:	Make-whole call at Treasuries plus 35 bps starting Nov. 9, 2023 to May 9, 2026; at par on May 9, 2026
Price talk:	Treasuries plus 230 bps area
Cusip:	06738ECF0
11-year notes
Amount:	$2 billion
Maturity:	May 9, 2034
Senior co-managers:	BMO Capital Markets Corp., Danske Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Nordea Bank Abp, RBC Capital Markets, LLC, Santander US Capital Markets LLC, SG Americas Securities, LLC, Standard Chartered Bank, TD Securities (USA) LLC and UBS Securities LLC
Co-managers:	Academy Securities, Inc., Bank of China Ltd., London Branch, Blaylock Van, LLC, Citizens Capital Markets, Inc., Commonwealth Bank of Australia, Desjardins Securities Inc., Emirates NBD Bank PJSC, MFR Securities, Inc., PNC Capital Markets LLC, Samuel A. Ramirez & Co., Inc., Tribal Capital Markets, LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
Coupon:	6.224% initial rate; resets to compounded daily SOFR plus 298 bps starting May 9, 2033
Price:	Par
Yield:	6.224%
Spread:	Treasuries plus 280 bps
Call features:	Make-whole call at Treasuries plus 45 bps starting Nov. 9, 2023 until May 9, 2033; at par on May 9, 2033
Price talk:	Treasuries plus 295 bps area
Cusip:	06738ECG8

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