By Angela McDaniels
Tacoma, Wash., Sept. 16 - Lloyds TSB Bank plc priced $7 million of additional callable fixed-to-floating-rate notes due Sept. 26, 2033 linked to the S&P 500 index and the difference between the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B5 filing with the Securities and Exchange Commission.
The original $3 million of notes priced Sept. 11. The issue size is now $10 million.
Morgan Stanley & Co. LLC is the agent.
The initial interest rate is 10%. Beginning Sept. 26, 2014, the interest rate will be the product of (a) the applicable multiplier multiplied by the spread of the 30-year CMS rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 10% per year, and (b) the proportion of days on which the index closes at or above the index reference level, which is 70% of the index's initial level. Interest is payable quarterly.
The multiplier is 5 times initially and will step up to 7 times on Sept. 26, 2023.
The payout at maturity will be par.
Beginning Sept. 26, 2018, the notes will be callable at par on any interest payment date.
Issuer: | Lloyds TSB Bank plc
|
Issue: | Callable fixed-to-floating-rate notes
|
Underlyings: | S&P 500 index, 30-year CMS rate and two-year CMS rate
|
Amount: | $10 million, increased from $3 million
|
Maturity: | Sept. 26, 2033
|
Coupon: | 10% initially; beginning Sept. 26, 2014, product of (a) applicable multiplier multiplied by spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 10% per year, and (b) proportion of days on which index closes at or above index reference level; multiplier is 5 times initially and steps up to 7 times on Sept. 26, 2023; payable quarterly
|
Price: | Variable prices
|
Payout at maturity: | Par
|
Call option: | At par on any interest payment date from Sept. 26, 2018 onward
|
Index reference level: | 70% of index's closing level on Sept. 23
|
Pricing dates: | Sept. 11 for $3 million; Sept. 13 for $7 million
|
Settlement date: | Sept. 26
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 3.5%
|
Cusip: | 5394E8CA5
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.