Lloyds to price callable CMS steepener notes through Bank of America

By Angela McDaniels

Tacoma, Wash., Jan. 30 - Lloyds TSB Bank plc plans to price callable steepener notes due Feb. 22, 2033 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to a 424B5 filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the agent.

The interest rate will be 10% for the first year. Beginning Feb. 22, 2014, it will be a per-year rate equal to (a) 4.25 times (b) the spread of the 30-year CMS rate over the five-year CMS rate minus 0.5, subject to a minimum rate of zero and maximum rate of 9% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Feb. 22, 2017, the notes will be callable at par on any interest payment date.

The notes are expected to price Feb. 15 and settle Feb. 22.

The Cusip number is 5394E8BN8.

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