By Angela McDaniels
Tacoma, Wash., Sept. 16 - Lloyds TSB Bank plc priced $7 million of additional callable fixed-to-floating-rate notes due Sept. 26, 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.
The original $3 million of notes priced Sept. 11. The issue size is now $10 million.
Morgan Stanley & Co. LLC is the agent.
The initial interest rate is 10%. Beginning Sept. 26, 2014, the interest rate will be the product of (a) the applicable multiplier multiplied by the spread of the 30-year CMS rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 10% per year, and (b) the proportion of days on which the index closes at or above the index reference level, which is 70% of the index's initial level. Interest is payable quarterly.
The multiplier is 5 times initially and will step up to 7 times on Sept. 26, 2023.
The payout at maturity will be par.
Beginning Sept. 26, 2018, the notes will be callable at par on any interest payment date.
| Issuer: | Lloyds TSB Bank plc
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| Issue: | Callable fixed-to-floating-rate notes
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| Underlyings: | S&P 500 index, 30-year CMS rate and two-year CMS rate
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| Amount: | $10 million, increased from $3 million
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| Maturity: | Sept. 26, 2033
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| Coupon: | 10% initially; beginning Sept. 26, 2014, product of (a) applicable multiplier multiplied by spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 10% per year, and (b) proportion of days on which index closes at or above index reference level; multiplier is 5 times initially and steps up to 7 times on Sept. 26, 2023; payable quarterly
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| Price: | Variable prices
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| Payout at maturity: | Par
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| Call option: | At par on any interest payment date from Sept. 26, 2018 onward
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| Index reference level: | 70% of index's closing level on Sept. 23
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| Pricing dates: | Sept. 11 for $3 million; Sept. 13 for $7 million
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| Settlement date: | Sept. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 5394E8CA5
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