Chicago, Feb. 8 – OTP Bank Nyrt priced $650 million of fixed-rate reset callable tier 2 capital notes due 2033 (Ba2/BB/Scope: BB+) on Wednesday, according to a market source.
The initial 8¾% rate will reset on May 15, 2028. The one-time reset will be calculated using the five-year Constant Maturity Treasury rate plus 506 basis points.
The notes priced at 99.417 to yield 8 7/8%.
Initial price talk was in the low 9%s.
The notes will be callable at par during the three months before the reset date.
BNP Paribas, Citi, JP Morgan, Morgan Stanley (billing and delivery) and OTP Bank are the joint bookrunners.
Order books were approximately double deal size.
The Regulation S notes will be listed in Luxembourg.
The commercial bank is based in Budapest.
| Issuer: | OTP Bank Nyrt
|
| Amount: | $650 million
|
| Issue: | Fixed-rate reset callable tier 2 capital notes
|
| Maturity: | May 15, 2033
|
| Bookrunners: | BNP Paribas, Citi, JP Morgan, Morgan Stanley (billing and delivery) and OTP Bank
|
| Coupon: | 8¾% initial rate; resets to CMT rate plus 506 bps on May 15, 2028
|
| Price: | 99.417
|
| Yield: | 8 7/8%
|
| Call features: | At par three months before May 15, 2028 reset date
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Scope: BB+
|
| Distribution: | Regulation S
|
| Price talk: | Low 9%s
|
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