By Angela McDaniels
Tacoma, Wash., Feb. 13 - Lloyds TSB Bank plc priced $3 million of 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 is 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 index's closing level on Feb. 21. 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 is 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 issuer said it may increase the issue size prior to the settlement date but is not required to.
| Issuer: | Lloyds TSB Bank plc
|
| Issue: | Senior callable fixed-to-floating-rate notes
|
| Underlyings: | Russell 2000 index, 30-year CMS rate and two-year CMS rate
|
| Amount: | $3 million
|
| Maturity: | Feb. 26, 2033
|
| Coupon: | 8% for first year; beginning Feb. 26, 2014, applicable interest rate multiplied by proportion of days on which index closes at or above index reference level; payable quarterly
|
| Applicable interest rate: | Four times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 8% per year
|
| Index reference level: | 75% of index's closing level on Feb. 21
|
| Price: | Variable prices from 97 to par
|
| Payout at maturity: | Par
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 5394E8BP3
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
