Prudential Financial begins consent solicitation for 6.625% notes

By Angela McDaniels

Tacoma, Wash., April 3 - Prudential Financial, Inc. began a consent solicitation for its 6.625% medium-term notes, series D, due 2037, according to a company news release.

The company is soliciting consents from holders of record as of 5 p.m. ET on April 2 to terminate the replacement capital covenants that it made in favor of the noteholders in connection with the issuance of its 8.875% fixed-to-floating-rate junior subordinated notes due 2068 and its 9% junior subordinated notes due 2068.

The company said it is soliciting the consents because these replacement capital covenants impose restrictions that limit its flexibility in dealing with the junior subordinated notes and in managing its capital structure but do not enhance the amount of equity credit that the company now receives from certain rating agencies for the junior subordinated notes.

The proposed termination of the replacement capital covenants requires the consent of the holders of at least a majority of the notes.

The consent solicitation will expire at 5 p.m. ET on April 11.

The company is offering a consent fee of $10 for each $1,000 principal amount of notes.

The solicitation agent is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The information and tabulation agent is Global Bondholder Services Corp. (866 294-2200).

Prudential Financial is a financial services company based in Newark.

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