Lloyds to price fixed-to-floating notes linked to Russell, CMS rates

By Angela McDaniels

Tacoma, Wash., Feb. 11 - Lloyds TSB Bank plc plans to price senior callable fixed-to-floating-rate notes due Feb. 26, 2033 linked to the Russell 2000 index and the difference between the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B5 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC is the agent.

The interest rate will be 8% for the first year. Beginning Feb. 26, 2014, the interest rate will be the applicable interest rate multiplied by the proportion of days on which the index closes at or above the index reference level, which will be 75% of the initial index level. The applicable interest rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 8% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Feb. 26, 2018, the notes will be callable at par on any interest payment date.

The notes will settle Feb. 26.

The Cusip number is 5394E8BP3.

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