Published on 9/13/2017 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Prudential sells $750 million of 4.5% fixed-to-floating notes due 2047
By Devika Patel
Knoxville, Tenn., Sept. 13 – Prudential Financial, Inc. priced a $750 million offering of 4.5% 30-year fixed-to-floating rate junior subordinated notes (Baa2/BBB+/BBB) at par on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes bear interest at a fixed rate until Sept. 15, 2027 and then carry a coupon equal to Libor plus 238 basis points.
The notes are non-callable until Sept. 15, 2027 and then are callable in whole at par plus interest.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC are the bookrunners.
The Newark, N.J., financial services company plans to use the proceeds from this offering for general corporate purposes, which may include refinancing its $600 million 8.875% fixed-to-floating rate junior subordinated notes and some of its medium-term notes maturing through 2018.
| Issuer: | Prudential Financial, Inc.
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| Amount: | $750 million
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| Description: | Fixed-to-floating rate junior subordinated notes
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| Maturity: | Sept. 15, 2047
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| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Natixis Securities Americas LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Williams Capital Group LP
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| Junior co-managers: | CastleOak Securities LP, Drexel Hamilton, LLC, Keefe, Bruyette & Woods, Inc., Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc. and Siebert Cisneros Shank & Co., LLC
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| Coupon: | 4.5% up to Sept. 15, 2027, then floats at Libor plus 238 bps
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| Price: | Par
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| Call feature: | Non-callable until Sept. 15, 2027, then callable in whole at par plus interest
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| Trade date: | Sept. 12
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| Settlement date: | Sept. 15
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB
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