Jefferies prices $55 million of step-up notes; RBC offers $6.73 million Celgene-linked notes

By Sheri Kasprzak

New York, July 19 – Heading up a light new-issue slate Tuesday, Jefferies Group LLC and its subsidiary Jefferies Group Capital Finance Inc. reported pricing $55 million of senior fixed-rate step-up callable notes.

The notes are due July 21, 2031 and pay 4.25% interest for the first five years. The rate steps up to 5.5% on July 21, 2021. Interest is payable semiannually.

Payout at maturity is par.

The notes are callable at par on July 21, 2021.

The issuers said they may increase the principal amount of the notes prior to the settlement date, July 21, but are not required to do so.

RBC prices Celgene notes

In other significant offerings, Royal Bank of Canada priced $6.73 million of 7% airbag autocallable yield notes linked to the common stock of Celgene Corp.

Interest on the notes, which are due July 21, 2017, is payable monthly.

The notes will be called automatically at par if Celgene shares close at or above the initial share price on any quarterly observation date.

The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Celgene shares equal to $1,000 divided by the conversion price. The conversion price is 85% of the initial share price.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

On Tuesday, Celgene’s stock fell by $0.44 to $102.26 (Nasdaq: CELG).

Looking to the company’s stock on a year-over-year basis, the stock has slipped $36 since July 22, 2015.

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