By Cristal Cody
Chicago, Jan. 23 – Truist Financial Corp. priced $3 billion of fixed-to-floating-rate notes in two tranches on Monday, according to a market source and 424B3 filings with the Securities and Exchange Commission.
The $3 billion offering was split equally across the two tranches.
The first tranche priced as notes with a starting 4.873% coupon that resets to SOFR plus 143.5 basis points in January 2028. The notes mature in January 2029.
The notes priced at Treasuries plus 125 bps after initial talk in the 155 bps area.
The second tranche priced with a starting 5.122% coupon that resets to SOFR plus 185.2 bps in January 2033. The notes mature in January 2034.
Pricing came at Treasuries plus 160 bps. Initial talk was 25 bps higher in the Treasuries plus 185 bps area.
Each tranche will feature, after 180 days, a make-whole call, followed by a par call one month prior to maturity for the 2029 notes and three months prior to maturity for the 2034 notes.
Truist Securities, Inc., Barclays and Morgan Stanley & Co. 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: | $3 billion
|
| Issue: | Fixed-to-floating-rate notes
|
| Bookrunners: | Truist Securities, Inc., Barclays and Morgan Stanley & Co. LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | In-house counsel and Squire Patton Boggs (US) LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Trade date: | Jan. 23
|
| Distribution: | SEC registered
|
|
|
| 2029 notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 26, 2029
|
| Coupon: | 4.873% starting coupon; resets to SOFR plus 143.5 bps in January 2028
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call starting after six months, par call one month priority to maturity
|
| Price talk: | Treasuries plus 155 bps area
|
|
|
| 2034 notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 26, 2034
|
| Coupon: | 5.122% starting coupon; resets to SOFR plus 185.2 bps in January 2033
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call starting after six months, par call three months priority to maturity
|
| Price talk: | Treasuries plus 185 bps area
|
|
|
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