By William Gullotti and Cristal Cody
Buffalo, N.Y., Aug. 3 – Macquarie Group Ltd. priced $1.65 billion of fixed-to-floating rate notes due 2026 and 2033, according to information from a market source.
The first tranche, maturing Aug. 9, 2026, totals $800 million of notes with a 5.108% initial coupon. The first tranche priced at a spread of 210 basis points over Treasuries, low to initial talk in the Treasuries plus 220 bps area. The rate resets to SOFR plus 220.8 bps after the fixed-rate period. The notes from the first tranche are non-callable for three years.
The second tranche totals $850 million, bearing a 5.491% initial coupon, and matures Nov. 9, 2033. Macquarie priced the second tranche at Treasuries plus 275 bps, also tight to initial talk in the Treasuries plus 285 bps area.
Notes from the second tranche have 10.25 years of call protection. The interest rate will reset to SOFR plus 286.5 bps after the fixed-rate period ends.
Macquarie Capital, BofA Securities, Citigroup, Goldman Sachs, JPMorgan and Wells Fargo Securities are the bookrunners for the deal.
Macquarie is based in Sydney, Australia.
| Issuer: | Macquarie Group Ltd.
|
| Amount: | $1.65 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Bookrunners: | Macquarie Capital, BofA Securities, Citigroup, Goldman Sachs, JPMorgan and Wells Fargo Securities
|
| Pricing date: | Aug. 2
|
|
|
| 2026 notes
|
| Amount: | $800 million
|
| Maturity: | Aug. 9, 2026
|
| Coupon: | 5.108%, resets to SOFR plus 220.8 bps
|
| Spread: | Treasuries plus 210 bps
|
| Call option: | Non-callable for three years
|
| Talk: | Treasuries plus 220 bps area
|
|
|
| 2033 notes
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| Amount: | $850 million
|
| Maturity: | Nov. 9, 2033
|
| Coupon: | 5.491%, resets to SOFR plus 286.5 bps
|
| Spread: | Treasuries plus 275 bps
|
| Call option: | Non-callable for 10.25 years
|
| Talk: | Treasuries plus 285 bps area
|
|
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