By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 12 – Mitsubishi UFJ Financial Group, Inc. sold four tranches of senior callable notes due April 2026, 2029 and 2034 totaling $2.5 billion (A1/A-/A-), according to an FWP filing with the Securities and Exchange Commission on Wednesday morning and details from a market source.
Of the two parts maturing in 2026, one part has a floating-rate coupon while the second tranche is made up of fixed-to-fixed reset notes.
The $300 million senior callable floating-rate notes due April 17, 2026 bear interest at SOFR plus 144 basis points. They priced at par.
The notes are redeemable in whole on April 17, 2025, one year prior to maturity, at par plus accrued interest.
The $500 million 5.541% senior callable fixed-to-fixed reset rate notes due April 17, 2026 priced at par, or at Treasuries plus 150 bps. Talk was in the Treasuries plus 185 bps area and subsequently revised to the Treasuries plus 180 bps area. On the reset date of April 17, 2025, the coupon will reset to Treasuries plus 150 bps.
The reset date is also the redemption date, when the 2026 notes will be redeemable in full at par plus accrued interest.
The third and fourth tranches are senior callable fixed-to-fixed reset rate notes due April 2029 and 2034.
The $700 million 5.242% senior callable fixed-to-fixed reset rate notes due April 19, 2029 priced at par, or at Treasuries plus 170 bps. Price talk started in the Treasuries plus 200 bps area and was subsequently revised to the Treasuries plus 195 bps area.
The notes are redeemable in full on April 19, 2028 at par plus accrued interest. This is also the reset date, on which the notes will convert to a coupon of Treasuries plus 170 bps.
The $1 billion 5.406% senior callable fixed-to-fixed reset rate notes due April 19, 2034 priced at par, or at Treasuries plus 197 bps. Talk was in the Treasuries plus 225 bps area and subsequently revised to the Treasuries plus 220 bps area.
They are redeemable in full on April 19, 2033 at par plus accrued interest. This is also the reset date, on which the notes will convert to a coupon of Treasuries plus 197 bps.
Morgan Stanley & Co. LLC and MUFG Securities Americas Inc. are leading the sale. In addition, each tranche has an additional bookrunner. Barclays is the bookrunner for the three-year floaters, BofA Securities, Inc. for the other three-year notes, Citigroup Global Markets Inc. for the six-year notes and J.P. Morgan Securities LLC for the 11-year notes.
The notes are intended to qualify as external total loss-absorbing capacity. Proceeds will be used to fund the operations of the bank and the trust bank.
The issuer is a bank based in Tokyo.
| Issuer: | Mitsubishi UFJ Financial Group, Inc.
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| Amount: | $2.5 billion
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| Issue: | Senior notes
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| Co-managers: | BNP Paribas, HSBC Securities (USA) Inc., TD Securities USA LLC, Credit Agricole CIB, Natixis Securities Americas LLC, Societe Generale, Nomura Securities International, Inc., Bank of China Ltd., Industrial and Commercial Bank of China Ltd., Singapore Branch and Wells Fargo Securities, LLC
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Paul, Weiss, Rifkind, Wharton & Garrison LLP and Nagashima Ohno & Tsunematsu
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Trade date: | April 11
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| Settlement date: | April 19
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| Ratings: | Moody’s: A1
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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| 2026 floaters
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| Amount: | $300 million
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| Maturity: | April 17, 2026
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| Bookrunners: | Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and Barclays
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| Senior co-managers: | BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
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| Coupon: | SOFR plus 144 bps
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| Price: | Par
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| Yield: | SOFR plus 144 bps
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| Call features: | In whole on April 17, 2025 at par
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| Price talk: | SOFR plus equivalent margin
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| Cusip: | 606822CZ5
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|
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| 2026 fixed
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| Amount: | $500 million
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| Maturity: | April 17, 2026
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| Bookrunners: | Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and BofA Securities, Inc.
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| Senior co-managers: | Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
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| Coupon: | 5.541% initially; resets to Treasuries plus 150 bps on April 17, 2025
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| Price: | Par
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| Yield: | 5.541%
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| Spread: | Treasuries plus 150 bps
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| Call features: | In whole on April 17, 2025 at par
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| Price talk: | Treasuries plus 185 bps area, revised to 180 bps area
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| Cusip: | 606822DA9
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|
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| 2029 notes
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| Amount: | $700 million
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| Maturity: | April 19, 2029
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| Bookrunners: | Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and Citigroup Global Markets Inc.
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| Senior co-managers: | Barclays, BofA Securities, Inc. and J.P. Morgan Securities LLC
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| Coupon: | 5.242% initially; resets to Treasuries plus 170 bps on April 19, 2028
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| Price: | Par
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| Yield: | 5.242%
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| Spread: | Treasuries plus 170 bps
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| Call features: | In whole on April 19, 2028 at par
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| Price talk: | Treasuries plus 200 bps area, revised to 195 bps area
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| Cusip: | 606822CY8
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|
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| 2034 notes
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| Amount: | $1 billion
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| Maturity: | April 19, 2034
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| Bookrunners: | Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and J.P. Morgan Securities LLC
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| Senior co-managers: | Barclays, BofA Securities, Inc. and Citigroup Global Markets Inc.
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| Coupon: | 5.406% initially; resets to Treasuries plus 197 bps on April 19, 2033
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| Price: | Par
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| Yield: | 5.406%
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| Spread: | Treasuries plus 197 bps
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| Call features: | In whole on April 19, 2033 at par
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| Price talk: | Treasuries plus 225 bps area, revised to 220 bps area
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| Cusip: | 606822DC5
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