By Angela McDaniels
Tacoma, Wash., Jan. 6 - Lloyds Bank plc priced $5 million of callable fixed-to-floating-rate notes due Jan. 29, 2034 linked to the S&P 500 index and the difference between the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to a 424B5 filing with the Securities and Exchange Commission.
Morgan Stanley & Co. LLC is the agent.
The initial interest rate is 10%. Beginning Jan. 29, 2015, the interest rate will be the product of (a) four times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 12% per year, and (b) the proportion of days on which the index closes at or above the index reference level, which is 65% of the index's closing level on Jan. 27. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Jan. 29, 2015, the notes will be callable at par on any interest payment date.
The issuer said it may increase the issue size prior to the Jan. 29 settlement date but is not required to do so.
| Issuer: | Lloyds Bank plc
|
| Issue: | Callable fixed-to-floating-rate notes
|
| Underlyings: | S&P 500 index, 30-year CMS rate and two-year CMS rate
|
| Amount: | $5 million
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| Maturity: | Jan. 29, 2034
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| Coupon: | 10% initially; beginning Jan. 29, 2015, product of (a) four times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 12% per year, and (b) proportion of days on which index closes at or above index reference level; payable quarterly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
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| Call option: | At par on any interest payment date from Jan. 29, 2015 onward
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| Index reference level: | 65% of index's closing level on Jan. 27
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| Pricing date: | Jan. 3
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| Settlement date: | Jan. 29
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
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| Cusip: | 5394E8CG2
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