By Cristal Cody
Chicago, Oct. 5 – Mitsubishi UFJ Financial Group, Inc. sold $2 billion from three tranches of callable fixed-to-fixed reset rate notes on Tuesday, according to a 424B5 filing with the Securities and Exchange Commission and a market source.
Mitsubishi sold $1 billion of 0.962% four-year notes with a spread of Treasuries plus 45 basis point, low to talk in the 70 bps area.
The middle tranche priced as $1.25 billion of 1.64% six-year notes with a 67 bps spread over Treasuries, low to talk in the 90 bps area.
And, the longest tranche came as $750 million of 2.494% 11-year notes that priced with a spread of Treasuries plus 97 bps, low to talk in the Treasuries plus 120 bps area.
All of the rates will reset for the final year of the notes at an applicable Treasury rate plus a margin.
The notes for each series will be redeemable at par plus interest on their reset dates. Otherwise, they are redeemable upon the occurrence of certain tax events.
Morgan Stanley & Co. LLC and MUFG are representing the underwriters. Citigroup Global Markets Inc. (four-year notes), J.P. Morgan Securities LLC (six-year notes) and BofA Securities, Inc. (11-year notes) are also listed as bookrunners.
Proceeds will be used to fund the operations of the bank and the trust bank through loans that are intended to qualify as internal total loss-absorbing and recapitalization capacity.
The financial group is based in Tokyo.
| Issuer: | Mitsubishi UFJ Financial Group, Inc.
|
| Issue: | Callable fixed-to-fixed reset rate notes
|
| Amount: | $2 billion
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Paul, Weiss, Rifkind, Wharton & Garrison LLP
|
| Counsel to bookrunners: | Simpson Thacher & Bartlett LLP
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| Trade date: | Oct. 5
|
|
|
| Four-year notes
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| Amount: | $1 billion
|
| Maturity: | Oct. 11, 2025
|
| Bookrunners: | Morgan Stanley & Co. LLC, MUFG, Citigroup Global Markets Inc.
|
| Coupon: | 0.962% until one year before maturity
|
| Spread: | Treasuries plus 45 bps
|
| Call features: | Par plus interest on reset date
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| Six-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Oct. 13, 2027
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| Coupon: | 1.64%
|
| Bookrunners: | Morgan Stanley & Co. LLC, MUFG, J.P. Morgan Securities LLC
|
| Spread: | Treasuries plus 67 bps
|
| Call features: | Par plus interest on reset date
|
| Price talk: | Treasuries plus 90 bps area
|
|
|
| 11-year notes
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| Amount: | $750 million
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| Maturity: | Oct. 13, 2032
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| Coupon: | 2.494%
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| Spread: | Treasuries plus 97 bps
|
| Bookrunners: | Morgan Stanley & Co. LLC, MUFG, BofA Securities, Inc.
|
| Call features: | Par plus interest on reset date
|
| Price talk: | Treasuries plus 120 bps area
|
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