Published on 11/15/2012 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Prudential Financial prices $1.5 billion 5.625% hybrid subordinated notes due 2043
By Andrea Heisinger
New York, Nov. 15 - Prudential Financial Inc. priced $1.5 billion of 5.625% $1,000-par fixed-to-floating rate junior subordinated notes due June 15, 2043, according to an FWP filing with the Securities and Exchange Commission on Thursday.
The notes will have a fixed rate until June 15, 2023. After that, there will be a floating rate of Libor plus 392 basis points.
Interest will be paid semiannually through June 15, 2023 on the 15th day of June and December. After June 15, 2023, interest will be paid on a quarterly basis, on the 15th day of March, June, September and December.
The notes can be called in whole at any time prior to June 15, 2023, within 90 days of a tax event, rating agency event or a regulatory capital event. In the case of a tax event or rating agency event, the call price includes a make-whole premium.
After June 15, 2023, the notes can be called in whole or in part at par plus accrued interest.
The notes will not be listed.
Joint bookrunners were Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes and to redeem some outstanding retail medium-term notes, including those issued under the InterNotes program.
Prudential is a Newark, N.J.-based financial services company.
| Issuer: | Prudential Financial Inc.
|
| Issue: | Fixed-to-floating-rate junior subordinated notes
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| Amount: | $1.5 billion
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| Maturity: | June 15, 2043
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| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Lloyds Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc.
|
| Junior co-managers: | CastleOak Securities LP, Drexel Hamilton, LLC, Loop Capital Markets LLC, Muriel Siebert & Co. Inc., Samuel A. Ramirez & Co. Inc., Williams Capital Group LP
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| Coupon: | 5.625% to June 15, 2023, Libor plus 392 bps after
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| Price: | $1,000-par
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| Yield: | 5.625% to June 15, 2023, Libor plus 392 bps after
|
| Call: | On or after June 15, 2023 in whole or in part at par plus accrued interest
|
| Trade date: | Nov. 14
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| Settlement date: | Nov. 19
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