Prudential Financial set to sell $25-par junior subordinated notes due 2053 talked around 5.75%

By Stephanie N. Rotondo

Phoenix, March 7 - Prudential Financial Inc. is planning to sell at least $250 million of $25-par junior subordinated notes due March 15, 2053, according to a prospectus filed with the Securities and Exchange Commission on Thursday.

Price talk is around 5.75%, a trader said.

Wells Fargo Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners.

Interest will be payable on the 15th day of March, June, September and December, beginning June 15. The company has the right to defer payments for one or more consecutive periods up to five years. However, that will alter the interest rate.

The notes can be redeemed prior to March 15, 2018, in whole, within 90 days of a tax event, a rating agency event or a regulatory capital event at par plus accrued interest. Otherwise, the notes cannot be redeemed until March 15, 2018.

Prudential intends to list the new notes on the New York Stock Exchange.

Proceeds will be used for general corporate purposes, which may include the redemption of the 9% junior subordinated notes due 2068.

Prudential is a Newark, N.J.-based financial services provider.

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