Lloyds plans eight-year fixed-to-floating notes with 5% initial rate

By Jennifer Chiou

New York, April 10 - Lloyds TSB Bank plc plans to price senior fixed-to-floored floating notes due April 27, 2020, according to a 424B5 filing with the Securities and Exchange Commission.

The coupon will be 5% for the first two years. After that, the interest rate will equal Libor plus 150 basis points, subject to a minimum rate of 2% from April 27, 2014 to April 27, 2016.

The minimum interest rate steps up to 2.5% on April 27, 2016, to 3% on April 27, 2017, to 3.5% on April 27, 2018 and to 4% on April 27, 2019. Interest is payable quarterly.

The payout at maturity will be par.

The notes (Cusip: 5394E8AP4) are expected to price on April 24 and settle on April 27.

Barclays Capital Inc. is the agent.

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