By Wendy Van Sickle
Columbus, Ohio, June 1 – Truist Financial Corp. priced $850 million of 4.123% six-year fixed-to-floating rate senior notes (A3/A-/A/DBRS: A (high)) at par on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 118 basis points.
The initial rate starts at 4.123% until June 6, 2027 when it converts to a floating rate of SOFR plus 136.8 bps.
Coupons are payable semiannually during the fixed-rate period and then during the floating-rate period quarterly with the rate resetting quarterly.
The notes will have a make-whole call that starts 180 days after issue and will last until the planned June 2027 first par call date. If the notes are not redeemed early on the first par call date, the notes will become non-callable until May 2028, at which time the notes will become callable at par until maturity.
Joint bookrunners were Truist Securities, Inc., Goldman Sachs & Co. LLC and RBC Capital Markets, LLC.
Proceeds will be used for general corporate purposes.
Truist is a Charlotte, N.C.-based bank holding company.
| Issuer: | Truist Financial Corp.
|
| Amount: | $850 million
|
| Issue: | Fixed-to-floating rate senior notes, series G
|
| Maturity: | June 6, 2028
|
| Bookrunners: | Truist Securities, Inc., Goldman Sachs & Co. LLC and RBC Capital Markets, LLC
|
| Co-managers: | Academy Securities, Inc., Drexel Hamilton, LLC and Mischler Financial Group, Inc.
|
| Counsel to issuer: | In-house and Squire Patton Boggs (US) LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Coupon: | 4.123% initial rate; resets to floating rate of SOFR plus 136.8 bps on June 6, 2027
|
| Price: | Par
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| Yield: | 4.123%
|
| Spread: | Treasuries plus 118 bps
|
| Call features: | Make-whole call after 180 days at Treasuries plus 20 bps until June 2027 first par call date, then not callable until May 6, 2028 when notes become callable at par
|
| Pricing date: | June 1
|
| Settlement date: | June 6
|
| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A
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| DBRS: A (high)
|
| Distribution: | SEC registered
|
| Cusip: | 89788MAG7
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