By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Oct. 27 – Truist Financial Corp. sold $1.5 billion of fixed-to-floating rate senior notes, series G, in two tranches due in 2026 and 2033 (A3/A-/A/DBRS: AAL), according to FWPs filed with the Securities and Exchange Commission.
The 2026 notes priced at par to yield 5.9%, or at Treasuries plus 150 basis points after talk in the 165 bps area.
The 2033 notes priced at par to yield 6.123%, or at Treasuries plus 210 bps after talk in the 225 bps area.
The interest rate for the 2026 notes will be 5.9% initially but will convert to a floating rate of SOFR plus 162.6 bps on and after Oct. 28, 2025. The coupon for the 2033 notes will be 6.123% initially but will convert to a floating rate of SOFR plus 230 bps on and after Oct. 28, 2032.
Each tranche will feature, after 180 days, a make-whole call at Treasuries plus 25 bps for the 2026 notes and Treasuries plus 35 bps for the 2033 notes.
The 2026 notes have a par call on Oct. 28, 2025 or any time after Sept. 28, 2026, one month prior to maturity. The 2033 notes feature a par on Oct. 28, 2032 or any time after July 28, 2033, three months prior to maturity.
Truist Securities, Inc., Citigroup Global Markets Inc. and RBC Capital Markets, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
Truist is a Charlotte, N.C.-based bank holding company.
| Issuer: | Truist Financial Corp.
|
| Amount: | $1.5 billion
|
| Issue: | Fixed-to-floating rate senior notes
|
| Bookrunners: | Truist Securities, Inc., Citigroup Global Markets Inc. and RBC Capital Markets, LLC
|
| Co-managers: | R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | In-house counsel and Squire Patton Boggs (US) LLP
|
| Counsel to bookrunners: | Sidley Austin LLP
|
| Trade date: | Oct. 26
|
| Settlement date: | Oct. 28
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| DBRS: AA (low)
|
|
|
| 2026 notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 28, 2026
|
| Coupon: | 5.9% starting rate; starting Oct. 28, 2025 at SOFR plus 162.6 bps
|
| Price: | Par
|
| Yield: | 5.9%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | After 180 days following issue and before Oct. 28, 2025, in whole or in part, at a make-whole redemption price at Treasuries plus 25 bps; in whole on Oct. 28, 2025 or in whole or in part any time after Sept. 28, 2026 at par
|
| Price talk: | Treasuries plus 165 area
|
| Cusip: | 89788MAJ1
|
|
|
| 2033 notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 28, 2033
|
| Coupon: | 6.123% starting rate; starting Oct. 28, 2032 at SOFR plus 230 bps
|
| Price: | Par
|
| Yield: | 6.123%
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | After 180 days following issue and before Oct. 28, 2032, in whole or in part, at a make-whole redemption price at Treasuries plus 35 bps; in whole on Oct. 28, 2032 or in whole or in part any time after July 28, 2033 at par
|
| Price talk: | Treasuries plus 225 area
|
| Cusip: | 89788MAK8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
