By Devika Patel and Cristal Cody
Knoxville, Tenn., June 28 – NatWest Group plc offered further details about the initial price talk for a $1 billion sale of 5.516% six-year senior callable fixed-to-fixed reset rate notes (Baa1/BBB/A) that priced at par on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes due Sept. 30, 2028 priced to yield 227 basis points over Treasuries and were talked to yield in the 255 bps area over Treasuries.
Bookrunners for the offering are BofA Securities, Inc., Citigroup Global Markets Inc., NatWest Markets Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC.
The coupon is fixed until Sept. 30, 2027, when it resets to a fixed rate equal to Treasuries plus 227 bps.
The notes are redeemable in whole at par after five years and also after a tax event.
NatWest plans to use the proceeds to fund its general banking business.
The company plans to list the notes on the New York Stock Exchange.
NatWest is an Edinburgh-based financial services company.
| Issuer: | NatWest Group plc
|
| Amount: | $1 billion
|
| Issue: | Fixed-to-fixed reset rate notes
|
| Maturity: | Sept. 30, 2028
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., NatWest Markets Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Davis Polk & Wardwell London LLP and CMS Cameron McKenna Nabarro Olswang LLP
|
| Coupon: | 5.516%; beginning Sept. 30, 2027, rate resets to fixed rate equal to Treasuries plus 227 bps
|
| Price: | Par
|
| Yield: | 5.516%
|
| Spread: | Treasuries plus 227 bps
|
| Call: | At par on Sept. 30, 2027
|
| Trade date: | June 27
|
| Settlement date: | June 30
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Initial price talk: | Treasuries plus 255 bps area
|
| Cusip: | 639057AF5
|
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