By Stephanie N. Rotondo
Phoenix, Nov. 28 - Prudential Financial Inc. sold $500 million 5.75% $25-par junior subordinated notes due Dec. 15, 2052, the company said in an FWP filed with the Securities and Exchange Commission on Wednesday.
Interest will be payable on the 15th day of March, June, September and December, beginning March 15, 2013. Interest payments are deferrable for up to five years, though the interest will accumulate and compound.
At the company's option, the notes can be redeemed at par plus accrued interest on or after Dec. 4, 2017, or prior to that date within 90 days of a regulatory capital event. If the notes are called due to a rating agency or tax event prior to Dec. 4, 2017, the call price includes a make-whole premium of Treasuries plus 45 basis points.
The notes will be listed on the New York Stock Exchange.
Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
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 Financial is a Newark, N.J.-based financial services company.
| Issuer: | Prudential Financial Inc.
|
| Securities: | Junior subordinated notes
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | Dec. 15, 2052
|
| Bookrunners: | Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC
|
| Coupon: | 5.75%
|
| Price: | Par of $25
|
| Yield: | 5.75%
|
| Talk: | 5.75% to 5.875%
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| Call options: | On or after Dec. 4, 2017 | or within 90 days of a regulatory capital treatment event at par plus accrued interest; upon a tax or rating agency event at par plus a make-whole premium
|
| Make-whole premium: | Treasuries plus 45 bps
|
| Pricing date: | Nov. 27
|
| Settlement date: | Dec. 3
|
| Expected ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Cusip: | 744320607
|
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