By William Gullotti and Cristal Cody
Buffalo, N.Y., March 2 – Prudential Financial, Inc. priced a two-part offering of pre-capitalized trust securities (P-Caps) totaling $1.5 billion (A3//A-/AM best: bbb) on Wednesday, according to information from a market source.
As previously reported, fixed-income investor calls were held on Tuesday for the Rule 144A deal.
The first series of P-Caps, totaling $800 million and featuring a 5.791% coupon, matures in 2033 and will be issued by Five Corners Funding Trust III. The 10-year notes priced at Treasuries plus 180 basis points, tight to initial talk in the Treasuries plus 195 bps area.
The second series of P-Caps totals $700 million and matures in 2053, carrying a 5.997% coupon. The 30-year notes were priced at a spread of 205 bps over Treasuries, also under initial talk in the 220 bps area, and will be issued by Five Corners Funding Trust IV.
Credit Suisse Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc. are the active bookrunners, with BNP Paribas Securities Corp. and U.S. Bancorp Investments Inc. acting as passive bookrunners.
Both of the Five Corners Funding Trusts are Delaware statutory trusts.
Prudential is a Newark, N.J.-based holding company. Its subsidiaries and affiliates offer financial products and services, including life insurance, annuities, retirement-related products and services, mutual funds and investment management.
| Issuer: | Prudential Financial, Inc.
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| Amount: | $1.5 billion
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| Issue: | Pre-capitalized trust securities (P-Caps)
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| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc. (active); BNP Paribas Securities Corp. and U.S. Bancorp Investments Inc. (passive)
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| Pricing date: | March 1
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| Ratings: | Moody’s: A3
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| Fitch: A-
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| AM Best: bbb
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| Distribution: | Rule 144A
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| 10-year notes
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| Subsidiary: | Five Corners Funding Trust III
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| Amount: | $800 million
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| Maturity: | Feb. 15, 2033
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| Coupon: | 5.791%
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| Spread: | Treasuries plus 180 bps
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| Initial talk: | Treasuries plus 195 bps area
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| 30-year notes
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| Subsidiary: | Five Corners Funding Trust IV
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| Amount: | $700 million
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| Maturity: | Feb. 15, 2053
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| Coupon: | 5.997%
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| Spread: | Treasuries plus 205 bps
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| Initial talk: | Treasuries plus 220 bps area
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