By James McCandless
San Antonio, Aug. 18 – Prudential Financial, Inc. priced an $800 million offering of $1,000-par fixed-to-fixed reset rate junior subordinated notes due Oct. 1, 2050 with an initial coupon of 3.7%, according to a market source.
Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Mizuho Securities USA LLC are the bookrunners.
Coupons will be payable on April 1 and Oct. 1, starting on April 1, 2021.
On Oct. 1, 2030 and every five years thereafter, the coupon coverts to a fixed rate equal to Treasuries plus 303.5 basis points.
The notes are redeemable within three months before Oct. 1, 2030 or each subsequent reset date. Prior to that, the notes are redeemable within 90 days after a tax event or regulatory capital event at par or 90 days after a rating agency event at 102%.
Prudential plans to use the proceeds to redeem its 2052 notes and 2053 notes.
The company does not plan to list the notes on any securities exchange.
| Issuer: | Prudential Financial, Inc.
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| Description: | Fixed-to-fixed reset rate junior subordinated notes
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| Amount: | $800 million
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| Maturity: | Oct. 1, 2050
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| Bookrunners: | Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Mizuho Securities USA LLC
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| Coupon: | 3.7%; on Oct. 1, 2030 and every five years thereafter, the coupon converts to a fixed rate of Treasuries plus 303.5 bps
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| Price: | Par of $1,000
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| Yield: | 3.7%
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| Call: | Within three months before Oct. 1, 2030 or each subsequent reset date; prior to that, within 90 days after a tax event or regulatory capital event at par or 90 days after a rating agency event at 102%
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| Pricing date: | Aug. 18
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| Distribution: | SEC registered
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