By Cristal Cody
Tupelo, Miss., Nov. 25 - Prudential Financial, Inc. and the Five Corners Funding Trust completed an offering of $1.5 billion of pre-capitalized trust securities (Baa1/A/) in a Rule 144A private placement, according to an 8-K filling with the Securities and Exchange Commission.
The securities are redeemable on Nov. 15, 2023.
The trust invested the proceeds in a portfolio of principal and interest strips of U.S. Treasury securities.
Under the facility terms, Prudential has a put option to issue senior notes due Nov. 15, 2023 in exchange for the collateral.
The put option requires the trust to purchase all or a portion of the company's $1.5 billion of 4.419% senior notes due Nov. 15, 2023 in exchange for all or a portion of the portfolio of principal and interest strips of U.S. Treasury securities. In exchange, Prudential Financial will pay a 1.777% put premium per year to the unexercised portion of the put option.
U.S. Bank NA is the put option calculation agent.
The P-Caps are set to be redeemed by the trust on Nov. 15, 2023 or earlier upon an early redemption of the senior notes.
Five Corners Funding Trust is a Delaware statutory trust that will act as a source of liquidity for Prudential Financial.
Prudential Financial is a Newark, N.J.-based insurance, investment management and financial products and services provider.
Issuer: | Prudential Financial, Inc./Five Corners Funding Trust
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Amount: | $1.5 billion
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Securities: | Pre-capitalized trust securities
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Agent: | U.S. Bank NA
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Call feature: | Nov. 15, 2023
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Put option: | Purchase all or portion of 4.19% notes due 2023 in exchange for collateral
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Put premium: | 1.777%
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Settlement date: | Nov. 25
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Ratings: | Moody's: Baa1
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| Standard & Poor's: A
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Distribution: | Rule 144A private placement
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