Published on 4/25/2012 in the Prospect News Structured Products Daily.
New Issue: Lloyds prices $11 million callable CMS steepener notes via Barclays
By Susanna Moon
Chicago, April 25 - Lloyds TSB Bank plc priced $11 million of callable CMS steepener notes due April 26, 2027, according to a 424B5 filing with the Securities and Exchange Commission.
The coupon will be 8% for the first year. After that, the rate will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, with a minimum rate of 0.25% and up to a maximum rate of 8% until April 26, 2018, 8.5% until April 26, 2022, 9% until April 26, 2024, 10% until April 26, 2026 and 12% after that until maturity. Interest is payable quarterly.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date after three years.
Barclays Capital Inc. is the agent.
Issuer: | Lloyds TSB Bank plc
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Issue: | Callable CMS steepener notes
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Amount: | $11 million
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Maturity: | April 26, 2027
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Coupon: | 8% initially; beginning April 26, 2013, four times spread of 30-year CMS rate over two-year CMS, floor of 0.25%, and capped at 8% to April 26, 2018, 8.5% to April 26, 2022, 9% to April 26, 2024, 10% to April 26, 2026 and 12% after that until maturity; payable quarterly
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Price: | Variable
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Payout at maturity: | Par
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Call option: | At par on any interest payment date beginning April 26, 2015
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Pricing date: | April 23
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Settlement date: | April 26
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Agent: | Barclays Capital Inc.
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Fees: | 5%
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Cusip: | 5394E8AN9
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