Prudential Financial to price 30-year fixed-to-fixed reset rate junior subordinated notes

By Rebecca Melvin

Concord, N.H., Feb. 23 – Prudential Financial Inc. plans to price a dollar-denominated offering of fixed-to-fixed reset rate junior subordinated notes due March 1, 2052, according to 424B2 filing with the Securities and Exchange Commission.

The initial rate resets on March 1, 2032 to a fixed rate equal to five-year Treasuries plus a margin.

The notes are callable for a make-whole premium prior to Dec. 1, 2031, and then they are callable at par plus interest for three months until the reset date. They are callable at par plus interest for the three months prior to subsequent resets.

At least $25 million principal amount must remain outstanding if the notes are called in part.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are joint bookrunners of the registered deal.

The Bank of New York Mellon is the trustee.

The company is using in-house counsel. Counsel to the underwriters is provided by Cleary Gottlieb Steen & Hamilton LLP.

The proceeds will be used for general corporate purposes, which may include redemption of the company’s $1 billion principal amount of 2042 notes.

The financial services company is based in Newark, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.