NEW YORK, Nov 20 (Reuters) - Royal Bank of Scotland on Friday sold $7 billion of government-guaranteed notes in two parts, said IFR, a Thomson Reuters service.
The offering included $5 billion of floating-rate notes with a coupon rate of 26 basis points over the London Interbank Offer Rate. It also included $2 billion of 3-year fixed-rate notes priced to yield 80.5 basis points over comparable U.S. Treasuries, according to IFR. The lead manager on the sale was RBS.
(Reporting by Caryn Trokie; Editing by Dan Grebler) Keywords: ROYALBANK NOTES/SALE
(caryn.trokie@thomsonreuters.com ; + 1 646-223-6318; Reuters Messaging: caryn.trokie.reuters.com@reuters.net)
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NEW YORK, Nov 20 (Reuters) - Royal Bank of Scotland will sell $7 billion of debt in a two-part sale with the guarantee of the UK government, IFR reported.
The bank will sell $5 billion of 3-year floating-rate notes at a yield spread of three-month London Interbank Offer Rate plus 26 basis points, said IFR, a Thomson Reuters service. It will sell $2 billion of 3-year fixed-rate notes at mid-swaps plus 26 basis points. RBS is lead manager on the sale, expected to price later Friday.
(Reporting by Ciara Linnane; Editing by Theodore d'Afflisio) Keywords: RBS DEBT/SALE
(ciara.linnane@thomsonreuters.com; Tel: +1 646 223 6342; Reuters Messaging: ciara.linnane.reuters.com@reuters.net)
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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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Royal Bank of Scotland Sells $7 Billion of Debt (Update1)
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By Gabrielle Coppola and Nikolaj Gammeltoft
Nov. 20 (Bloomberg) -- Royal Bank of Scotland Plc, sold $7 billion of debt due in March 2012, according to data compiled by Bloomberg, equaling the largest U.S. corporate sale since May.
The government-backed issue was split between $2 billion of fixed-rate notes that priced to yield 80.5 basis points more than similar-maturity U.S. Treasuries and $5 billion of floating-rate debt that pay a spread of 26 basis points more than the three-month London interbank offered rate, Bloomberg data show. A basis point is 0.01 percentage point.
Proceeds from the sale of the notes, which may receive top ratings from Moody’s Investors Service and Standard & Poor’s, will be used for general corporate purposes, according to a person familiar with transaction, who declined to be identified because of lack of authorization to speak on the record.
The sale was the biggest in the U.S. corporate market since RBS sold $7 billion of three-year government-backed debt in May, according to Bloomberg data. That offering also was split between fixed- and floating-rate notes. The $4.5 billion of fixed-rate notes paid 124.5 basis points more than U.S. benchmarks, and the $2.5 billion floaters paid 70 basis points more than Libor.
Chancellor of the Exchequer Alistair Darling established a guarantee program in response to the credit crunch that allows financial companies to sell bonds with government guarantees.
The U.K. Treasury agreed earlier this month to inject 25.5 billion pounds ($42.1 billion) of capital into Edinburgh-based Royal Bank of Scotland, increasing its stake to 84.4 percent from 70.3 percent.
Neil Moorhouse, a spokesman for Royal Bank of Scotland, Britain’s biggest government-controlled bank, didn’t return calls and e-mails requesting comment.
To contact the reporters on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
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