Published on 12/29/2010 in the Prospect News Structured Products Daily.
New Issue: Nomura upsizes callable leveraged steepener notes on CMS rates to $6.5 million
By Marisa Wong
Madison, Wis., Dec. 27 - Nomura America Finance, LLC priced an additional $3.5 million of callable leveraged steepener notes due Dec. 29, 2025 based on the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $6.5 million. The issuer priced an initial $3.01 million of the steepener notes on Dec. 20.
The coupon will be 12% for the first two years. After that, the rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate, up to a maximum of 10%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning Dec. 29, 2012.
Nomura Securities International, Inc. is the agent.
Issuer: | Nomura America Finance, LLC
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Issue: | Callable leveraged steepener notes
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Amount: | $6.5 million, increased from $3,005,000
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Maturity: | Dec. 29, 2025
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Coupon: | 12% for two years; thereafter, four times difference between 30-year CMS rate and two-year CMS rate, capped at 10% with floor of zero; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on interest payment dates after two years
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Pricing date: | Dec. 20 for $3,005,000; Dec. 23 for $3,495,000
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Settlement date: | Dec. 29
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Agent: | Nomura Securities International, Inc.
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Fees: | 3.5%
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Cusip: | 65539AAM2
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