By Marisa Wong
Madison, Wis., Aug. 13 - Lloyds TSB Bank plc priced $3 million of senior callable fixed-to-floating-rate notes due Aug. 28, 2033 linked to the S&P 500 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 Aug. 28, 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 and the spread of the 30-year CMS rate over the two-year CMS rate is at least 50 basis points. The index reference level will be 75% of the index's closing level on Aug. 23. The applicable interest rate will be 8% initially and will step up to 9% on Aug. 28, 2018 and to 10% on Aug. 28, 2028. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Aug. 28, 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: | S&P 500 index, 30-year CMS rate and two-year CMS rate
|
| Amount: | $3 million
|
| Maturity: | Aug. 28, 2033
|
| Coupon: | 8% for first year; beginning Aug. 28, 2014, applicable interest rate multiplied by proportion of days on which index closes at or above index reference level and spread of 30-year CMS rate over two-year CMS rate is at least 50 bps; applicable rate is 8% initially and will step up to 9% on Aug. 28, 2018 and to 10% on Aug. 28, 2028; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
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| Call option: | At par on any interest payment date beginning Aug. 28, 2018
|
| Index reference level: | 75% of index's closing level on Aug. 23
|
| Pricing date: | Aug. 12
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| Settlement date: | Aug. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 5394E8BZ1
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