By Devika Patel
Knoxville, Tenn., May 29 – HSBC Holdings plc offered further details, including the price, exact coupon terms and settlement date, on a $3.5 billion sale of fixed-to-floating rate senior notes (A2/A-/A+) that priced in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
A $2 billion tranche of 2.099% six-year notes priced at par with a spread of Treasuries plus 175 basis points.
Initial price talk was in the 200 bps over Treasuries area with guidance firmed to the 180 bps area, plus or minus 5 bps.
The coupon will reset to a floating rate of SOFR plus 192.9 bps beginning on June 4, 2025.
HSBC sold $1.5 billion of 2.848% notes due June 4, 2031 at par with a Treasuries plus 215 bps spread.
The notes were initially talked to price in the Treasuries plus 235 bps area and later guided to print at a 215 bps spread.
The rate will convert to SOFR plus 238.7 bps beginning on June 4, 2030.
HSBC Securities (USA) Inc. was the bookrunner.
Proceeds will be used to fund its obligations for tender offers announced on Thursday that include $3 billion of 3.4% senior notes due March 8, 2021, $2.5 billion of 5.1% senior notes due April 5, 2021, $2.5 billion of 2.95% senior notes due May 25, 2021, $1 billion of floating-rate senior notes due March 8, 2021 and $1 billion of floating-rate senior notes due May 25, 2021 and for general corporate purposes.
The banking and financial services group is based in London.
| Issuer: | HSBC Holdings plc
|
| Amount: | $3.5 billion
|
| Description: | Fixed-to-floating rate senior notes
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, ABN Amro Inc., Banca IMI SpA, BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Commerz Markets LLC, ING Financial Markets LLC, Mizuho Securities USA LLC, Natixis Securities Americas LLC, Nordea Bank ABP, RB International Markets (USA) LLC, Scotia Capital (USA) Inc., Skandinaviska Enskilda Banken AB (publ), SMBC Nikko Securities America Inc., UniCredit Capital Markets LLC and Wells Fargo Securities LLC
|
| Trade date: | May 28
|
| Settlement date: | June 4
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $2 billion
|
| Maturity: | June 4, 2026
|
| Coupon: | 2.099%; resets to floating rate of SOFR plus 192.9 bps on June 4, 2025
|
| Price: | Par
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Non-callable
|
| Price guidance: | Treasuries plus 180 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 200 bps area
|
|
|
| 11-year notes
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| Amount: | $1.5 billion
|
| Maturity: | June 4, 2031
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| Coupon: | 2.848%; resets to floating rate of SOFR plus 238.7 bps on June 4, 2030
|
| Price: | Par
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Non-callable
|
| Price guidance: | Treasuries plus 215 bps; initial price talk at Treasuries plus 235 bps area
|
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