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HSBC Finance tenders for up to $1.10 billion of 6.676% notes due 2021
New York, Sept. 5 – HSBC Finance Corp. announced a tender offer for up to $1,104,230,000 of its $2,938,669,000 of outstanding 6.676% senior subordinated notes due Jan. 15, 2021.
HSBC Finance has also entered into an agreement with parent company HSBC Holdings plc under which HSBC Finance will repurchase the $730.77 million of the 6.676% notes held by HSBC Holdings in addition to any notes acquired in the tender.
HSBC Finance will pay the same price to HSBC Holdings as it will pay for early tendered notes unless the tender is not completed in which case it will pay the average trading price of the notes over the five business days prior to settlement.
The purchase price in the tender offer will be set using a fixed spread of 20 basis points over the 1.625% Treasury due Aug. 31, 2022.
Included in the price is an early tender premium of $30.00 per $1,000 principal amount that will only be paid to those who participate by the early tender date of 5 p.m. ET on Sept. 18.
The tender ends at 11:59 p.m. ET on Oct. 2.
Tenders may be withdrawn until 5 p.m. ET on Sept. 18.
HSBC Finance will also pay accrued interest up to but excluding the settlement date.
If the offer is oversubscribed then tenders will be accepted on a pro rata basis.
Early tenders will be given precedence for acceptance over subsequent tenders.
In addition, if the tender cap is reached by the early tender date then no subsequent tenders will be accepted.
HSBC Securities (USA) Inc. (888 HSBC-4LM or 212 525-5552) is dealer manager. Global Bondholder Services Corp. (212 430-3774, 866 470-3800, contact@gbsc-usa.com or http://www.gbsc-usa.com/HSBC/) is depositary and information agent.
HSBC Finance is based in New York and owns and services a portfolio of residential real estate loans.
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