FWP 1 dp147390_fwp-usd6nc5.htm FORM FWP

 

Filed pursuant to Rule 433

Dated March 4, 2021 

Registration No. 333-231902

 

 

Lloyds Banking Group plc

USD 1,000,000,000 1.627% Senior Callable Fixed-to-Fixed Rate

Notes due 2027

 

Pricing Term Sheet:

 

 Issuer (LEI number) Lloyds Banking Group plc (549300PPXHEU2JF0AM85)
Status Senior, Unsecured
Format SEC Registered Global Notes – Fixed-to-Fixed Rate
Expected Issue Ratings* A3 (Moody’s) / BBB+ (S&P) / A+ (Fitch)
Principal Amount USD 1,000,000,000
Denomination USD 200,000 and integral multiples of USD 1,000 in excess thereof
Pricing Date March 4, 2021
Expected Settlement / Issue Date** March 11, 2021 (T+5)
Maturity Date May 11, 2027
Optional Redemption The Issuer may redeem the Senior Notes in whole (but not in part) in its sole discretion on May 11, 2026
Initial Coupon 1.627% per annum, payable semi-annually in arrears (with a long first coupon)
Interest Payment Dates

From, and including, March 11, 2021 to, but excluding, May 11, 2026 (the “Initial Fixed Rate Period”), interest will be payable on the Senior Notes semi-annually in arrears on May 11 and November 11 each year, beginning on November 11, 2021 (long first interest period)

 

From, and including, May 11, 2026 to, but excluding, May 11, 2027 (the “Reset Fixed Rate Period”), interest will be payable on the Senior Notes semi-annually in arrears on November 11, 2026 and May 11, 2027

Reference Benchmark Treasury 0.500% due 28 Feb 2026
Reference Benchmark Treasury Price / Yield 98-20 3/4 / 0.777%
Reoffer Spread to Benchmark Treasury +85 bps
Fixed Rate Reoffer Yield 1.627%
Issue Price / Re-Offer Price 100.000%
Redemption Price 100.000%
Underwriting Commission 0.250%
All-in Price 99.750%
Net Proceeds to the Issuer before expenses USD 997,500,000

  

Filed pursuant to Rule 433

Dated March 4, 2021 

Registration No. 333-231902

 

 

Fixed Rate Period Day Count Fraction 30/360
Initial Fixed Rate Period Business Day Convention Following, Unadjusted
Change of Fixed Rate of Interest after Optional Redemption Date
Reset Fixed Rate Period Coupon 1-yr U.S. Treasury Rate (as defined in the preliminary prospectus supplement dated March 4, 2021 (the “Preliminary Prospectus Supplement”) +85 bps during the Reset Fixed Rate Period
Reset Determination Date The second business day immediately preceding the Reset Date
Reset Date May 11, 2026
Reset Fixed Rate Period Day Count Fraction 30/360
Reset Fixed Rate Period Business Day Convention Following, Unadjusted
Optional Redemption Notice Period At least five business days but no more than thirty business days prior to the Optional Redemption Date
Business Days Means any day, other than Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in the City of New York or in the City of London
Joint Bookrunners Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc. and TD Securities (USA) LLC
Expected Listing New York Stock Exchange
Governing Law The Indenture and the Senior Notes are governed by, and construed in accordance with, the laws of the State of New York
MREL Eligibility Intended to qualify as MREL and all applicable eligibility conditions to be met
Waiver of Set-Off Yes – set-off rights waived, as further described in the Preliminary Prospectus Supplement
Loss Absorption Disqualification Event Redemption The Issuer may, at its option (but subject to, if and to the extent then required by the Relevant Regulator (as defined in the Preliminary Prospectus Supplement) or the Loss Absorption Regulations (as defined in the Preliminary Prospectus Supplement), its giving notice to the Relevant Regulator and the Relevant Regulator granting it permission), redeem only all but not some of the Senior Notes outstanding at any time at 100% of their principal amount plus interest if, immediately prior to the giving of the notice referred to above, it notifies the Trustee that a Loss Absorption Disqualification Event (as defined in the Preliminary Prospectus Supplement) has occurred (as further described under “Description of the Senior Notes — Loss Absorption Disqualification Event Redemption”  in the Preliminary Prospectus Supplement).
Agreement with Respect to the Exercise of U.K. Bail-in Power

Notwithstanding any other agreements, arrangements, or understandings between us and any holder or beneficial owner of the Senior Notes, the holders and beneficial owners of the Senior Notes will be required to agree that by purchasing or acquiring the Senior Notes, they acknowledge, accept, agree to be bound by and consent to the exercise of any U.K. bail-in power (as defined below) by the relevant U.K. resolution authority that may result in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, the Senior Notes; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, the Senior Notes into shares or other securities or other obligations of Lloyds Banking Group plc or another person; and/or (iii) the amendment or alteration of the maturity of the Senior Notes, or amendment of the amount of interest due on the Senior Notes, or the dates on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in power may be exercised by means of variation of the terms of the Senior Notes solely to give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. Each holder and beneficial owner of the Senior Notes will further be required to acknowledge and agree that the rights of the holders and/or beneficial owners under the Senior Notes are subject to, and will be varied, if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

Filed pursuant to Rule 433

Dated March 4, 2021 

Registration No. 333-231902

 

 

 

For these purposes, a “U.K. bail-in power” is any write-down, conversion, transfer, modification or suspension power existing from time to time under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to Lloyds Banking Group plc or its affiliates, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted in the United Kingdom within the context of the U.K. resolution regime under the Banking Act 2009 as the same has been or may be amended from time to time (whether pursuant to secondary legislation or otherwise), pursuant to which any obligations of a bank, banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified, transferred and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for a temporary period) or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised. A reference to the “relevant U.K. resolution authority” is to any authority with the ability to exercise a U.K. bail-in power.

Repayment of Principal and Payment of Interest After Exercise of U.K. Bail-in Power No repayment of the principal amount of the Senior Notes or payment of interest on the Senior Notes shall become due and payable after the exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that such repayment or payment, respectively, is scheduled to become due, such repayment or payment would be permitted to be made by Lloyds Banking Group plc under the laws and regulations of the United Kingdom applicable to Lloyds Banking Group plc.
ISIN US53944YAP88
CUSIP 53944Y AP8
Singapore SFA Product Classification In connection with Section 309B of the Securities and Futures Act (Chapter 289) of Singapore (the “SFA”) and the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore (the “CMP Regulations 2018”), the Issuer has determined, and hereby notifies all relevant persons (as defined in Section 309A(1) of the SFA), that the Notes are ‘prescribed capital markets products’ (as defined in the CMP Regulations 2018) and Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).
Target Market

UK MIFIR professionals/ECPs-only/ No UK PRIIPs KID– Manufacturer target market (UK MIFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No UK PRIIPs key information document (KID) has been prepared as not available to retail in UK

 

MiFID II professionals/ECPs-only/ No EU PRIIPs KID– Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No EU PRIIPs key information document (KID) has been prepared as not available to retail in EEA

 

*Note: A securities rating is not a recommendation to buy, sell or hold securities.  Ratings may be subject to revision or withdrawal at any time, and each rating should be evaluated independently of any other rating.

 

Lloyds Banking Group plc has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Lloyds Banking Group plc has filed with the SEC for more complete information about Lloyds Banking Group plc and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Lloyds Banking Group plc and any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at 1-800-831-9146, J.P. Morgan Securities LLC collect at 1-212-834-4533, Lloyds Securities Inc. collect at 1-212-284-0411 or TD Securities (USA) LLC collect at 1-855-495-9846.

 

**We currently expect delivery of the Senior Notes to occur on or about March 11, 2021, which will be the fifth business day following the pricing of the Senior Notes (such settlement cycle being referred to as “T+5”). Under Rule 15c6-1 of the U.S. Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in two Business Days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade Senior Notes on the date of pricing or the next two succeeding Business Days will be required, by virtue of the fact that the Senior Notes initially will settle in T+5, to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement. Purchasers of Senior Notes who wish to trade Senior Notes on the date of pricing or the next two succeeding Business Days should consult their own advisors.

 

Filed pursuant to Rule 433

Dated March 4, 2021 

Registration No. 333-231902

 

 

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