Societe Generale plans to price 20-year callable CMS spread notes

By Jennifer Chiou

New York, Aug. 7 - Societe Generale plans to price callable CMS spread notes due Aug. 31, 2033 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to a term sheet.

The interest rate will be 12% for the first year. After that, it will be a per-year rate equal to four times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum rate of 12%. Interest will be payable semiannually.

The payout at maturity will be par.

Beginning in August 2014, the notes are callable at par on any interest payment date.

The notes (Cusip: 83368WDX6) will price on Aug. 27 and settle on Aug. 30.

SG Americas Securities, LLC is the agent. Advisors Asset Management, Inc. is distributor.

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