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Pru Goes To Wall Street

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Prudential Financial Inc. says it is selling up to $2.1 billion in convertible senior notes due in 2035 through a private placement.[@@]

Prudential, Newark, N.J., says it plans to pay an interest rate on the notes that will be 2.76 percentage points less than the 3-month London Inter Bank Offered Rate interest rate benchmark. The current 3-month LIBOR is 4.33%.

Each $1,000 of notes could turn into 11.11 shares of Prudential common stock if Prudential’s stock price rises about 21%, to $90 per share.

Prudential plans to use $210 million in note issue proceeds to buy back its stock and to invest the rest in investment-grade bonds.