By Toni Weeks
San Luis Obispo, Calif., Nov. 19 - Lloyds Bank plc priced an additional $7 million of callable capped CMS steepener notes due Nov. 27, 2033, according to a 424B5 filing with the Securities and Exchange Commission.
This brings the total deal size to $12 million. The initial $5 million of the notes priced Nov. 14.
The coupon will be 10% for the first year. After that, the rate will be 4 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus a strike of 35 basis points, up to a maximum rate of 10%. Interest is 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 after one year.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Lloyds Bank plc
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Issue: | Callable capped CMS steepener notes
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Amount: | $12 million, upsized from $5 million
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Maturity: | Nov. 27, 2033
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Coupon: | 10% for one year; after that, 4 times spread of 30-year CMS rate over two-year CMS rate less 35 bps, capped at 10%; 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 Nov. 27, 2014
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Pricing dates: | Nov. 14 (for $5 million); Nov. 18 (for $7 million)
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Settlement date: | Nov. 27
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.5%
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Cusip: | 5394E8CE7
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