New Issue: Lloyds prices $5 million callable step-up notes with 3.5% initial rate

By Jennifer Chiou

New York, Aug. 24 - Lloyds TSB Bank plc priced $5 million of callable step-up fixed-rate notes due Sept. 19, 2027 via Morgan Stanley & Co. LLC, according to a 424B5 filing with the Securities and Exchange Commission.

The interest rate is 3.5% for the first five years. It will step up to 4% on Sept. 19, 2017, to 4.5% on Sept. 19, 2019, to 5% on Sept. 19, 2022, to 5.5% on Sept. 19, 2023, to 6% on Sept. 19, 2024, to 7% on Sept. 19, 2025 and to 10% on Sept. 19, 2026. Interest is payable quarterly.

Beginning on Sept. 19, 2017, the notes will be callable at par on any interest payment date.

The payout at maturity will be par.

Issuer:	Lloyds TSB Bank plc
Issue:	Callable step-up fixed-rate notes
Amount:	$5 million
Maturity:	Sept. 19, 2027
Coupon:	3.5% initially, stepping up to 4% on Sept. 19, 2017, to 4.5% on Sept. 19, 2019, to 5% on Sept. 19, 2022, to 5.5% on Sept. 19, 2023, to 6% on Sept. 19, 2024, to 7% on Sept. 19, 2025 and to 10% on Sept. 19, 2026; payable quarterly
Price:	Variable
Payout at maturity:	Par
Call option:	At par on any interest payment date from Sept. 19, 2017 onward
Pricing date:	Aug. 24
Settlement date:	Sept. 19
Agent:	Morgan Stanley & Co. LLC
Fees:	2.25%
Cusip:	5394E8BF5

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