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HSBC launches capped tender offer for three series of notes
By Marisa Wong
Los Angeles, Nov. 6 – HSBC Holdings plc said it is inviting holders of its outstanding €2 billion 1.5% notes due March 2022 (ISIN: XS1379182006), €1.5 billion floating-rate notes due September 2022 (ISIN: XS1586214956) and €1.5 billion floating-rate notes due October 2023 (ISIN: XS1681855539) to tender their notes for purchase for cash.
The maximum amount of notes that HSBC will accept under the offer will depend on the proceeds that it receives from a concurrent offering of new notes.
Specifically, the maximum acceptance amount will be the total proceeds from the new notes less €1 billion earmarked for the redemption of HSBC’s €1 billion floating-rate notes due 2021 (ISIN: XS1917614569) on Dec. 4. The tender cap will be announced on Nov. 9.
The purchase price for the March 2022 notes will be determined using a purchase yield of negative 0.45%. The purchase price for the September 2022 notes is fixed at 100.58, and the price for the October 2023 notes is fixed at 100.61.
The company will also pay accrued interest to but excluding the settlement date.
The offer expires at 11 a.m. ET on Nov. 12. Results are expected to be announced on Nov. 13, and settlement is slated for Nov. 16.
The issuer will give priority in acceptance to March 2022 notes tendered for purchase. The September 2022 and October 2023 notes both have second priority in acceptance under the tender offer. The issuer said it may accept significantly more or less or none of the notes of one series compared to the other series.
Notes accepted for purchase may be subject to proration.
The tender offer is conditioned on completion of the new notes issuance.
HSBC Bank plc (+44 20 7992 6237, attn.: liability management, LM_EMEA@hsbc.com) is the dealer manager. Lucid Issuer Services Ltd. (+44 20 7704 0880, attn.: Arlind Bytyqi, hsbc@lucid-is.com) is the tender agent.
HSBC is a banking and financial services company based in London.
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