JPMorgan Chase & Co., the largest U.S. bank, is planning to issue $750 million of 30-year bonds, its first dollar-denominated benchmark offering of that maturity in 20 months.
The subordinated notes may yield 190 basis points more than similar-maturity Treasuries, according to a person with knowledge of the transaction. Proceeds from the securities, which may be rated A3 by Moody’s Investors Service, will be used for general corporate purposes, said the person, who asked not to be identified because terms aren’t set. Benchmark sales are typically at least $500 million.
JPMorgan issued $1.25 billion of 5.4 percent, 30-year debentures in December 2011 to yield 250 basis points more than benchmarks, according to data compiled by Bloomberg. The notes traded at 108 cents on the dollar to yield 4.88 percent on Aug. 12, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Two former JPMorgan employees were charged today by U.S. prosecutors with attempting to conceal trading losses last year as part of a probe of the bank’s $6.2 billion loss on derivatives trades.
Bruno Iksil, the Frenchman at the center of the case who became known as the “London whale” because his portfolio was so large, signed a non-prosecution agreement with the U.S. in June, the government said today.