Published on 1/22/2024 in the Prospect News Investment Grade Daily.
New Issue: Truist prices $3.5 billion of fixed-to-floating notes due 2030, 2035
By Wendy Van Sickle
Columbus, Ohio, Jan. 22 – Truist Financial Corp. priced $3.5 billion of series I fixed-to-floating rate notes in two tranches (A3/A-/A/DBRS: AAL) at par on Monday, according to two FWP filings with the Securities and Exchange Commission.
The first tranche, totaling $1.5 billion, priced at Treasuries plus 142 basis points. The first tranche matures Jan. 24, 2030 with a starting 5.435% coupon that resets to SOFR plus 162 bps one year prior to maturity.
The second tranche, totaling $2 billion, carries a starting 5.711% coupon that resets to SOFR plus 192.2 bps on Jan. 24, 2034. This tranche, priced at Treasuries plus 162 bps, matures Jan. 24, 2035.
Each tranche is non-callable for the first 180 days after issue, with several call options following thereafter.
Truist Securities, Inc., BofA Securities, Inc., Citigroup Global Markets Inc. and UBS Securities LLC are the joint bookrunning managers.
Proceeds will be used for general corporate purposes.
Truist is a Charlotte, N.C.-based bank holding company.
| Issuer: | Truist Financial Corp.
|
| Amount: | $3.5 billion
|
| Issue: | Fixed-to-floating rate notes, series I
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| Bookrunners: | Truist Securities, Inc., BofA Securities, Inc., Citigroup Global Markets Inc. and UBS Securities LLC
|
| Co-managers: | Blaylock Van, LLC, Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Counsel to issuer: | Mayer Brown LLP
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| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 24
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
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| DBRS: AA (low)
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| Distribution: | SEC registered
|
|
|
| 2030 notes
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| Amount: | $1.5 billion
|
| Maturity: | Jan. 24, 2030
|
| Coupon: | 5.435% starting coupon; resets to SOFR plus 162 bps on Jan. 24, 2029
|
| Price: | Par
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| Yield: | 5.435%
|
| Spread: | Treasuries plus 142 bps
|
| Call features: | Non-callable for first 180 days, then make-whole at Treasuries plus 25 bps until Jan. 24, 2029; par call in whole, but not in part, on that date; non-callable until Dec. 24, 2029 then par call in whole, or in part, until maturity
|
| Cusip: | 89788MAR3
|
|
|
| 2035 notes
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| Amount: | $2 billion
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| Maturity: | Jan. 24, 2035
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| Coupon: | 5.711% starting coupon; resets to SOFR plus 192.2 bps on Jan. 24, 2034
|
| Price: | Par
|
| Yield: | 5.711%
|
| Spread: | Treasuries plus 162 bps
|
| Call features: | Non-callable for first 180 days, then make-whole at Treasuries plus 25 bps until Jan. 24, 2034; par call in whole, but not in part, on that date; non-callable until Oct. 24, 2034 then par call in whole, or in part, until maturity
|
| Cusip: | 89788MAS1
|
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