Chicago, Nov. 1 – Prudential plc sold $1 billion of 2.95% subordinated notes due Nov. 3, 2033 (A3/A-) at par, according to a final term sheet.
The initial rate resets on Nov. 3, 2028 to Treasuries plus 151.7 basis points.
There is a make-whole call option at Treasuries plus 25 bps or a par call option three months before the reset date up to and including Nov. 3, 2028.
The Regulation S only notes were issued under the company’s $10 billion medium-term note program and are intended to qualify as tier 2 group capital.
BNP Paribas, HSBC, JPMorgan, SMBC Nikko and Standard Chartered Bank were mandated as joint lead managers.
Proceeds will be used for general corporate purposes, including the planned redemption of Prudential’s 4.375% undated tier 2 notes.
Prudential provides life and health insurance and asset management.
| Issuer: | Prudential plc
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| Issue: | Subordinated notes
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| Amount: | $1 billion
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| Maturity: | Nov. 3, 2033
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| Bookrunners: | BNP Paribas, HSBC, JPMorgan, SMBC Nikko and Standard Chartered Bank
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| Coupon: | 2.95%; resets to Treasuries plus 151.7 bps on Nov. 3, 2028
|
| Price: | Par
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| Yield: | 2.95%
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| Call features: | Callable in full at par three months before reset date; otherwise make-whole call at Treasuries plus 25 bps
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| Trade date: | Nov. 1
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| Settlement date: | Nov. 3
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | Regulation S
|
| Marketing: | Investor calls
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| ISIN: | XS2403426427
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