Barclays Capital’s September deal marks the first placing of the innovative Tier One Notes (Tons) structure in the US market. The AA rated perpetual yankee issue with a 30-year call option had a 6.86% coupon and was priced at 215 basis points over 30-year US treasuries. If the deal is not called after 30 years its coupon will be transformed into floating-rate Libor plus 1.73%. Any coupon repayment after the call date will have to be made via the Alternative Coupon Settlement Mechanism (ACSM).
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