By Cristal Cody
Tupelo, Miss., Nov. 25 - Prudential Financial, Inc. and the Five Corners Funding Trust completed an offering of $1.5 billion of pre-capitalized trust securities (Baa1/A/) in a Rule 144A private placement, according to an 8-K filling with the Securities and Exchange Commission.
The securities are redeemable on Nov. 15, 2023.
The trust invested the proceeds in a portfolio of principal and interest strips of U.S. Treasury securities.
Under the facility terms, Prudential has a put option to issue senior notes due Nov. 15, 2023 in exchange for the collateral.
The put option requires the trust to purchase all or a portion of the company's $1.5 billion of 4.419% senior notes due Nov. 15, 2023 in exchange for all or a portion of the portfolio of principal and interest strips of U.S. Treasury securities. In exchange, Prudential Financial will pay a 1.777% put premium per year to the unexercised portion of the put option.
U.S. Bank NA is the put option calculation agent.
The P-Caps are set to be redeemed by the trust on Nov. 15, 2023 or earlier upon an early redemption of the senior notes.
Five Corners Funding Trust is a Delaware statutory trust that will act as a source of liquidity for Prudential Financial.
Prudential Financial is a Newark, N.J.-based insurance, investment management and financial products and services provider.
| Issuer: | Prudential Financial, Inc./Five Corners Funding Trust
|
| Amount: | $1.5 billion
|
| Securities: | Pre-capitalized trust securities
|
| Agent: | U.S. Bank NA
|
| Call feature: | Nov. 15, 2023
|
| Put option: | Purchase all or portion of 4.19% notes due 2023 in exchange for collateral
|
| Put premium: | 1.777%
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A
|
| Distribution: | Rule 144A private placement
|
© 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.
