By Evan Weinberger
New York, Dec. 7 - Prudential Financial, Inc. priced $3 billion in floating-rate convertible senior notes due 2037 Friday. The convertibles will carry a Libor minus 163 basis points coupon and a 35% initial conversion premium.
Citigroup is the bookrunner of the Rule 144A transaction.
There is a $450 million over-allotment option.
The settlement date is expected to be Dec. 12.
The convertibles were reoffered at 99.25.
The convertibles have a $98.875 conversion price and a 7.5532 conversion ratio.
The convertibles have call protection for the first 18 months and there are put options at 18 months and in years two, three, four, five, 10, 15, 20 and 25.
The convertibles have takeover protection in the form of a standard make-whole table and full dividend protection.
Prudential is a Newark, N.J.-based financial institution. Prudential plans to use the proceeds to repurchase $239 million in common stock and for general corporate purposes.
Issuer: Prudential Financial, Inc.
Issue: Floating-rate convertible senior notes
Amount: $3 billion
Greenshoe: $450 million
Maturity: Dec. 15, 2037
Coupon: Libor minus 163 bps
Price: 99.25
Conversion premium: 35%
Conversion price: $98.875
Conversion ratio: 7.5532
Call: Callable after 18 months
Put: At 18 months and in years two, three, four, five, 10, 15, 20 and 25
Bookrunner: Citigroup
Pricing date: Dec. 7
Settlement date: Dec. 12
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