by Andrea Johnson
NEW YORK, Aug 30 (IFR) - US insurer USAA Capital Corp on Tuesday sold $250 million of 3-year medium-term notes at the lowest ever coupon for an insurer and for a Financial Institutions Group (FIG) deal, according to Thomson Reuters/IFR data.
USAA priced the 144A deal via Citigroup, Deutsche bank and Wells Fargo at 99.898 with a coupon of 1.05 percent to yield 1.084 percent, or a yield spread of 77 basis points over Teasuries.
The deal was originally whispered in the mid-80s area, according to market sources.
The 1.05 percent coupon comes in about mid-point of the Thomson Reuters/IFR 3-year low coupon top 20 table, which includes industrials as well as FIG deals.
That was just ahead of Royal Bank of Canada
The USAA deal also comes in as the lowest insurance company coupon IFR has on record, with the closest contender a New York Life 1.85s of 12/13/13 guaranteed investment contract-backed deal (Aaa/AA+), priced on 7/9/10.
(Andrea Johnson is a senior IFR analyst)