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HSBC accepts tenders for $1.01 billion of 5.875% and 5.625% notes
By Sarah Lizee
Olympia, Wash., Nov. 13 – HSBC Bank USA, NA announced pricing and final results of its offers to purchase for cash any and all of its $1 billion 5.875% subordinated notes due Nov. 1, 2034 and $750 million 5.625% subordinated notes due Aug. 15, 2035.
By the expiration time at 5 p.m. ET on Nov. 12, HSBC had received valid tenders for $641,934,000, or 64.19%, of the 5.875% notes and $366,647,000, or 48.89%, of the 5.625% notes. HSBC accepted all tendered notes for purchase.
Tendered notes may no longer be withdrawn.
Settlement is expected on Nov. 15.
The total consideration for each $1,000 principal amount of notes validly tendered and accepted for payment was determined by reference to a fixed spread over the yield based on the bid side price of a U.S. Treasury security. Pricing was calculated at 10 a.m. ET on Nov. 4.
For the 5.875% notes, the reference security was the 1.625% U.S. Treasury due Aug. 15, 2029 and the spread was 130 basis points, resulting in a total consideration of $1,310.03 per $1,000 of notes.
For the 5.625% notes, the reference security was the 2.875% U.S. Treasury due May 15, 2049 and the spread was 105 bps, resulting in a total consideration of $1,260.71 per $1,000 of notes.
Holders will also be paid accrued interest from and including the last interest payment date to but excluding the settlement date.
Global Bondholder Services Corp. (212 430-3774 for banks and brokers, 866 470-4200 for all others or contact@gbsc-usa.com) is the information agent and depositary.
HSBC Securities (USA) Inc. (888 HSBC-4LM or 212 525-5552 collect) is the dealer manager.
The banking subsidiary of HSBC Holdings plc is based in London.
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