Published on 5/20/2021 in the Prospect News Investment Grade Daily.
New Issue: HSBC details $5 billion fixed-to-floaters in two parts due 2025, 2032
By Devika Patel
Knoxville, Tenn., May 20 – HSBC Holdings plc offered further details, including the coupon terms, about a $5 billion two-part offering of fixed-to-floating rate notes (A2/A-/A+) that priced on Monday, according to an FWP filed with the Securities and Exchange Commission.
The bank priced $2 billion of four-year notes, which start with a 0.976% coupon for a Treasuries plus 65 basis points spread.
Talk on the tranche had been in the Treasuries plus 95 bps area.
The notes will reset to a floating rate of SOFR plus 70.75 bps on May 24, 2024 and are callable after three years.
A second tranche of $3 billion of notes due May 24, 2032 was sold with a starting fixed rate of 2.804%.
The notes priced with a Treasuries plus 117 bps spread, lower than talk in the Treasuries plus 140 bps area.
The notes will reset to a floating rate based on SOFR plus 118.7 bps on May 24, 2031 and can be called after 10 years.
HSBC Securities (USA) Inc. is the bookrunner of the notes, for which proceeds will be used for general corporate purposes.
The issuer is a banking and financial services group based in London.
| Issuer: | HSBC Holdings plc
|
| Issue: | Fixed-to-floating rate notes
|
| Amount: | $5 billion
|
| 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
|
| Co-managers: | ABN Amro Securities (USA) LLC, BBVA Securities Inc., BofA Securities, Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Danske Markets Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, Loop Capital Markets LLC, Mizuho Securities USA LLC, Natixis Securities Americas LLC, R. Seelaus & Co., LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Swedbank AB (publ) and UniCredit Capital Markets LLC
|
| Trade date: | May 17
|
| Settlement date: | May 24
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| 2025 notes
|
| Amount: | $2 billion
|
| Maturity: | May 24, 2025
|
| Coupon: | 0.976% initial rate; resets to SOFR plus 70.75 bps on May 24, 2024
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Callable at par beginning May 24, 2024
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2032 notes
|
| Amount: | $3 billion
|
| Maturity: | May 24, 2032
|
| Coupon: | 2.804% initial rate; converts to SOFR plus 118.7 bps on May 24, 2031
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | Callable at par beginning May 24, 2031
|
| Price talk: | Treasuries plus 140 bps area
|
|
|
|
|
|
|
© 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.
