By Jennifer Chiou
New York, March 31 - Lloyds Bank plc priced $5 million of callable fixed-to-floating-rate notes due April 10, 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 on April 10, 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 75% of the index's closing level on March 27. Interest is payable quarterly.
The payout at maturity will be par.
Beginning on April 10, 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 April 10 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
|
| Maturity: | April 10, 2034
|
| Coupon: | 10% initially; beginning April 10, 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
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from April 10, 2015 onward
|
| Index reference level: | 75% of index's closing level on March 27
|
| Pricing date: | March 27
|
| Settlement date: | April 10
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 5394E8CK3
|
© 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.
