Published on 8/8/2018 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Barclays prices $2.5 billion 7.75% perpetual subordinated convertible notes at par
By Cristal Cody
Tupelo, Miss., Aug. 8 – Barclays plc sold $2.5 billion of 7.75% resetting perpetual subordinated contingent convertible securities (Ba3/B+/) on Tuesday at par to yield 7.748%, or a spread of 497.8 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on top of guidance and better than initial talk in the 8% area.
Barclays was the bookrunner.
The fixed rate will reset Sept. 15, 2023 and every following fifth year thereafter at a spread of mid-swaps plus 484.2 bps.
Proceeds from the deal will be used for general corporate purposes.
The financial services company is based in London.
| Issuer: | Barclays plc
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| Amount: | $2.5 billion
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| Description: | Perpetual subordinated contingent convertible securities
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| Maturity: | Perpetual
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| Bookrunner: | Barclays
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| Independent underwriter: | Morgan Stanley & Co. LLC
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| Lead managers: | BBVA Securities Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC, Lloyds Securities Inc., Morgan Stanley | & Co. LLC, Natixis Securities Americas LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, Swedbank AB, UBS Securities LLC
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| Co-lead managers: | Bankia SA, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., Drexel Hamilton, LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Williams Capital Group, LP, U.S. Bancorp Investments, Inc.
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| Coupon: | 7.75%; resets Sept. 15, 2023 and every following fifth year thereafter at a spread of mid-swaps plus 484.2 bps
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| Price: | Par
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| Yield: | 7.748%
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| Spread: | Treasuries plus 497.8 bps
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 14
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| Call feature: | Sept. 15, 2023 and every five years thereafter
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| Ratings: | Moody’s: Ba3
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| S&P: B+
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| Distribution: | SEC registered
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| Price guidance: | 7.75%; initial price talk at 8% area
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