Prudential talks $1,000-par fixed-to-floating junior subordinated notes due 2045 at 5.625%

By Stephanie N. Rotondo

Phoenix, May 13 – Prudential Financial Inc. is offering $1,000-par fixed-to-floating rate junior subordinated notes due May 15, 2045, according to a prospectus filed with the Securities and Exchange Commission on Wednesday.

Price talk is 5.625%, a market source reported.

Goldman Sachs & Co., BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, HSBC and Mizuho Securities are running the books.

Dividends will be fixed and payable semiannually through May 15, 2025. At that point, the notes begin to float at Libor plus a spread and will be payable on a quarterly basis.

If no default has occurred, the company can defer interest payments for up to five years.

Prior to May 15, 2025, the notes can be redeemed in whole within 90 days of tax or regulatory capital treatment event. In the tax event case, the redemption price will include a make-whole premium.

Otherwise, the notes do not become redeemable until May 15, 2025.

The new securities will not be listed on any exchange.

Proceeds will be used for general corporate purposes, which may include refinancing some medium-term notes coming due in 2016.

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

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