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HSBC passes resolutions for two series, adjourns meetings for three
Chicago, Sept. 24 – HSBC announced that resolutions had passed at noteholder meetings for two sterling-denominated bonds on Friday and meetings were adjourned for three other series, according to multiple announcements.
The bonds were issued by HSBC Holdings plc, HSBC Bank plc and HSBC Bank Capital Funding (Sterling 1) LP.
All of the meetings are or were being held to approve proposed amendments for benchmark rate replacement.
Resolutions passed
Meetings were being held for the £700 million outstanding 5.844% non-cumulative step-up perpetual preferred securities (tier 1 securities) issued by HSBC Bank Capital Funding (ISIN: XS0179407910) and HSBC Bank’s £350 million outstanding 5.375% callable subordinated step-up notes due 2030 (ISIN: XS0204377310).
The amendments replace Libor, six-month or three-month respectively, with daily compounded Sonia.
Resolutions were duly passed at the noteholder meetings, and the relevant resolution will be effective Sept. 24.
One-month extension
For the other three series, HSBC will hold adjourned meetings starting at 5 a.m. ET on Oct. 29, due to a lack of quorum on Friday.
The consent solicitations will expire at 5 a.m. ET on Oct. 27.
Singapore dollar notes
Two Singapore dollar-denominated notes are still part of the proposed changes.
HSBC Holdings issued the S$1 billion outstanding 4.7% perpetual subordinated contingent convertible securities (ISIN: XS1624509300) and the S$750 million outstanding perpetual subordinated contingent convertible securities (ISIN: XS1882693036).
The issuer is seeking to replace the five-year Singapore dollar swap offer rate (SOR) by the Singapore overnight rate average (SORA).
Fallbacks would be added dealing with a potential benchmark event with respect to SORA.
HSBC Holdings reset notes
As previously reported, the fifth series is the £1 billion outstanding 2.256% resettable notes due November 2026 (ISIN: XS1716248197) issued by HSBC Holdings.
The amendment would replace the Libor-linked one-year mid-swap rate with a Sonia-linked mid-swap rate.
Fallbacks would be added related to Sonia.
The adjustment spread would be based on the historical five-year median difference between sterling Libor and Sonia.
Details
Quorums are necessary for the meetings. A quorum would be met by noteholders representing two-thirds of the principal amount of notes.
From the respective quorum, a majority in favor of at least 75% of the votes is necessary for the relevant resolution.
No consent fee will be paid with any consent solicitation.
The solicitation agent is HSBC Bank (+44 20 7992 6237, LM_EMEA@hsbc.com).
The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, hsbc@lucid-is.com).
The banking and financial services company is based in London.
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