Prudential Financial Prices Baby Bonds

Prudential Financial (NYSE:PRU) has priced their new $25 baby bonds announced this morning with a coupon of 5.625%.  The issue is a large one with about 20,000,000 shares being offered

The issue has the typical terms with an optional redemption date in 2023–the maturity date is 2058.  The issue is investment grade with anticipated rating of BBB+ from S&P.

Being debt the interest payments are not qualified distributions.

The pricing term sheet is here.


5 thoughts on “Prudential Financial Prices Baby Bonds”

  1. Anybody have any information on when this will begin trading and the symbol? Fidelity allows a CUSIP lookup. When I do a search by Cusip 744320805, it does show up.

    5.62500% 08/15/2058 PFD

    Also says Fidelity is not currently offering this security.

    Of greater interest to me, is I see a 3rd party price/recent trade. Today has $24.85, yesterday was $24.75. Si this is trading somewhere but not on any standard brokerage platforms which baffles me. Anybody understand what is happening here?

    1. I have read that the book runners already have institutions and such lined up for some of the shares before releasing the others to the market. And of course usually they get the better price out the door.

      1. It figures and that was my guess. It’s been going on all week and maybe even the end of last week(don’t remember).

  2. Higher coupon than I thought. Both PRUA and PRUB are callable at this point. Given marginal difference in coupon’s, doesn’t seem like they will gain much at all by calling these at this point since those coupons are 5.7% and 5.75% and this is 5.625%. Time will tell.

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