By Angela McDaniels
Tacoma, Wash., Feb. 20 - Lloyds TSB Bank plc priced $17 million of callable steepener notes due Feb. 22, 2033 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to a 424B5 filing with the Securities and Exchange Commission.
BofA Merrill Lynch is the agent.
The interest rate is 10% for the first year. Beginning Feb. 22, 2014, it will be a per-year rate equal to (a) 4.25 times (b) the spread of the 30-year CMS rate over the five-year CMS rate minus 0.5, subject to a minimum rate of zero and maximum rate of 9% per year. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Feb. 22, 2017, the notes will be callable at par on any interest payment date.
| Issuer: | Lloyds TSB Bank plc
|
| Issue: | Callable steepener notes
|
| Underlying rates: | 30-year and five-year Constant Maturity Swap rates
|
| Amount: | $17 million
|
| Maturity: | Feb. 22, 2033
|
| Coupon: | 10% for first year; beginning Feb. 22, 2014, per-year rate equal to (a) 4.25 times (b) spread of 30-year CMS rate over five-year CMS rate minus 0.5, subject to minimum rate of zero and maximum rate of 9% per year; payable quarterly
|
| Price: | Variable prices from 94 to par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from Feb. 22, 2017 onward
|
| Pricing date: | Feb. 15
|
| Settlement date: | Feb. 22
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 4.706%
|
| Cusip: | 5394E8BN8
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
