New Issue: HSBC sells $2 billion 1.589% fixed-to-floaters due May 2027 with 120 bps spread

By Devika Patel

Knoxville, Tenn., Nov. 18 – HSBC Holdings plc priced $2 billion of 1.589% fixed-to-floating rate senior notes (A2/A-/A+) due May 24, 2027 at a spread of Treasuries plus 120 basis points on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

The London banking and financial services group sold the notes at par with an initial 1.589% coupon, which will convert to a rate equal to SOFR plus 129 bps on May 24, 2026.

Proceeds will be used to fund a tender offer that started on Tuesday. Any remaining proceeds will be used for general corporate purposes.

HSBC Securities (USA) Inc. was the bookrunner.

Issuer:	HSBC Holdings plc
Issue:	Fixed-to-floating rate senior notes
Amount:	$2 billion
Maturity:	May 24, 2027
Bookrunner:	HSBC Securities (USA) Inc.
Senior co-managers:	Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
Junior co-managers:	Bank of China Ltd., London Branch, BofA Securities Inc., Commerz Markets LLC, Danske Markets Inc., Intesa Sanpaolo SpA, Natixis Securities Americas LLC, Rabo Securities USA, Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
Coupon:	1.589% until May 24, 2026 then at SOFR plus 129 bps
Price:	Par
Spread:	Treasuries plus 120 bps
Call feature:	Make-whole call at Treasuries plus 20 bps until May 24, 2026, then a par call
Trade date:	Nov. 17
Settlement date:	Nov. 24
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: A+
Distribution:	SEC registered

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.