National Westminster Bank PLC on Thursday sold $500 million of exchangeable capital securities. increasing the offer from its original $300 million.
The securities start as perpetual debt that carry a 7.875% yield, and can be exchanged by the bank after three years for noncumulative perpetual preferred stock that yields 8.75%. The pricing was in line with the originally proposed terms when the issue was first marketed on Oct. 21. Capital markets sources said NatWest wanted to issue $500 million in debt all along, but the underwriters weren't sure the market was there.