New Issue: HSBC Holdings sells $2.25 billion senior notes due 2026 in two parts

By Marisa Wong and Cristal Cody

Los Angeles, March 4 – HSBC Holdings plc priced $2.25 billion of four-year senior notes (expected: A3/A-/A+) in two tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.

HSBC priced $500 million of notes at par to yield SOFR plus 143 basis points.

The company also sold $1.75 billion of 2.999% notes at par to yield Treasuries plus 133 bps. The interest rate resets to SOFR plus 143 bps.

Initial price talk was in the Treasuries plus 160 bps area, according to a market source.

The floaters have a par call after three years. The fixed-to-floating rate notes are callable after six months, initially at a make-whole price and then at par after three years.

HSBC Securities (USA) Inc. is the bookrunner.

The investment banking company is based in London.

Issuer:	HSBC Holdings plc
Amount:	$2.25 billion
Issue:	Senior notes
Maturity:	March 10, 2026
Bookrunner:	HSBC Securities (USA) Inc.
Co-managers:	ABN Amro Securities (USA) LLC, BBVA Securities Inc., BMO Capital Markets Corp., BofA Securities, Inc., CIBC World Markets Corp., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Erste Group Bank AG, ING Financial Markets LLC, Intesa Sanpaolo SpA, J.P. Morgan Securities LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Mizuho Securities USA LLC, Natixis Securities Americas LLC, Nordea Bank Abp, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., UniCredit Capital Markets LLC and Wells Fargo Securities, LLC
Pricing date:	March 3
Settlement date:	March 10
Expected ratings:	Moody’s: A3
	S&P: A-
	Fitch: A+
Distribution:	SEC registered
Floaters
Amount:	$500 million
Coupon:	SOFR plus 143 bps
Price:	Par
Yield:	SOFR plus 143 bps
Call options:	In whole at par on March 10, 2025; in whole at par within 90 days of loss absorption disqualification event; in whole at par upon occurrence of tax events
Put option:	No
Cusip:	404280DB2
Fixed-to-floaters
Amount:	$1.75 billion
Coupon:	2.999%, resets on March 10, 2025 to SOFR plus 143 bps
Price:	Par
Yield:	2.999%
Spread:	Treasuries plus 133 bps
Call options:	Make-whole call at Treasuries plus 20 bps from Sept. 10, 2022 up to March 10, 2025; par call on March 10, 2025; in whole at par within 90 days of loss absorption disqualification event; in whole at par upon occurrence of tax events
Put option:	No
Initial price talk:	Treasuries plus 160 bps area
Cusip:	404280DA4

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