By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, June 9 – NatWest Group plc priced $1.5 billion of 1.642% six-year senior callable fixed-to-fixed reset rate notes (Baa2/BBB/A) at par on Wednesday, according to a 424B5 filing with the Securities and Exchange Commission.
The notes due June 14, 2027 priced to yield 90 basis points over Treasuries and were talked to yield in the 115 bps area over Treasuries, according to a market source.
NatWest Markets Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the joint bookrunners.
Coupons are payable semiannually. The coupon is fixed until June 14, 2026, when it resets to a fixed rate equal to Treasuries plus 90 bps.
The notes are redeemable in whole at par after five years and also after a tax event.
NatWest plans to use the proceeds to fund its general banking business.
The company plans to list the notes on the New York Stock Exchange.
NatWest is an Edinburgh-based financial services company.
| Issuer: | NatWest Group plc
|
| Amount: | $1.5 billion
|
| Maturity: | June 14, 2027
|
| Description: | Fixed-to-fixed reset rate notes
|
| Bookrunners: | NatWest Markets Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC
|
| Coupon: | 1.642%; beginning June 14, 2026, rate resets to fixed rate equal to Treasuries plus 90 bps
|
| Price: | Par
|
| Yield: | 1.642%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | At par on June 14, 2026
|
| Trade date: | June 9
|
| Settlement date: | June 14
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 115 bps area
|
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