By Stephanie N. Rotondo
Phoenix, March 19 - Prudential Financial Inc. priced $500 million of 5.2% $1,000-par fixed-to-floating rate junior subordinated notes due March 15, 2044, according to a market source.
Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities, J.P. Morgan Securities LLC and RBS Securities Inc. are the joint bookrunners.
Through March 15, 2024, interest will be payable on the 15th day of March and September at the fixed rate. Beginning on June 15, 2024, the interest rate will begin to float at three-month Libor plus 307 bps.
Once floating, the interest will be payable on the 15th day of March, June, September and December.
Prior to March 15, 2024, the company can redeem the notes in whole within 90 days of a tax event, a rating agency event or a regulatory capital treatment event. In the instance of a tax or rating agency event, the call price would be equal to par plus accrued interest plus a make-whole premium.
In case of a regulatory capital treatment event, the call price would be par plus accrued interest.
Additionally, the notes can be redeemed on or after March 15, 2024 in whole or in part at par plus accrued interest.
The notes will not be listed.
Proceeds will be combined with funds raised on March 14 in an offering of 5.7% junior subordinated notes due 2053 to redeem all $920 million of 9% junior subordinated notes due 2068.
Prudential is a Newark, N.J.-based financial services and insurance provider.
| Issuer: | Prudential Financial Inc.
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| Securities: | Junior subordinated notes
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| Amount: | $500 million
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| Maturity: | March 15, 2044
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities, J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Coupon: | 5.2% until June 15, 2024, then floats at three-month Libor plus 307 bps
|
| Price: | Par of $1,000
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| Yield: | 5.2%
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| Call options: | Prior to March 15, 2024 in whole in case of a regulatory capital treatment event at par plus accrued interest; also within 90 days of a tax or rating agency event at par plus accrued interest plus a make-whole premium; on or after March 15, 2024 at par plus accrued interest
|
| Pricing date: | March 19
|
| Settlement date: | March 22
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