By Angela McDaniels
Tacoma, Wash., Feb. 20 - Lloyds TSB Bank plc priced $17 million of callable steepener notes due Feb. 22, 2033 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to a 424B5 filing with the Securities and Exchange Commission.
BofA Merrill Lynch is the agent.
The interest rate is 10% for the first year. Beginning Feb. 22, 2014, it will be a per-year rate equal to (a) 4.25 times (b) the spread of the 30-year CMS rate over the five-year CMS rate minus 0.5, subject to a minimum rate of zero and maximum rate of 9% per year. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Feb. 22, 2017, the notes will be callable at par on any interest payment date.
Issuer: | Lloyds TSB Bank plc
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Issue: | Callable steepener notes
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Underlying rates: | 30-year and five-year Constant Maturity Swap rates
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Amount: | $17 million
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Maturity: | Feb. 22, 2033
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Coupon: | 10% for first year; beginning Feb. 22, 2014, per-year rate equal to (a) 4.25 times (b) spread of 30-year CMS rate over five-year CMS rate minus 0.5, subject to minimum rate of zero and maximum rate of 9% per year; payable quarterly
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Price: | Variable prices from 94 to par
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Payout at maturity: | Par
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Call option: | At par on any interest payment date from Feb. 22, 2017 onward
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Pricing date: | Feb. 15
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Settlement date: | Feb. 22
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Underwriter: | BofA Merrill Lynch
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Fees: | 4.706%
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Cusip: | 5394E8BN8
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