Published on 6/12/2023 in the Prospect News Investment Grade Daily.
New Issue: HSBC sells $2 billion 6.547% fixed-to-floating subordinated notes due 2034
Chicago, June 12 – HSBC Holdings plc sold $2 billion of fixed-to-floating rate subordinated notes due 2034 (Baa1/BBB/A-) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The initial 6.547% rate converts to a floating rate of SOFR plus 298 basis points starting June 20, 2033.
The notes priced at par, or at Treasuries plus 280 bps.
HSBC may redeem the notes at par when the rate converts from a fixed rate.
If there is a capital disqualification event, HSBC may redeem the notes at par.
HSBC Securities (USA) Inc. is the sole bookrunner.
Proceeds will be used for general corporate purposes and to strengthen the bank’s capital base.
HSBC is a London-based banking and financial services group.
| Issuer: | HSBC Holdings plc
|
| Amount: | $2 billion
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Maturity: | June 20, 2034
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Co-managers: | AmeriVet Securities, Inc., ANZ Securities, Inc., Apto Partners, LLC, Barclays, Banco Bilbao Vizcaya Argentaria, SA, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, BofA Securities, Inc., CaixaBank, SA, CastleOak Securities, LP, CAVU Securities, LLC, Citigroup Global Markets Inc., Commerz Markets LLC, Commonwealth Bank of Australia, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Erste Group Bank AG, Guzman & Co., Intesa Sanpaolo SpA, Jefferies LLC, KBC Securities USA LLC, Mischler Financial Group, Inc., Morgan Stanley & Co. LLC, Penserra Securities LLC, R. Seelaus & Co., LLC, Siebert Williams Shank & Co., LLC, Societe Generale, TD Securities (USA) LLC, Telsey Advisory Group LLC, Tigress Financial Partners LLC, Tribal Capital Markets, LLC and UniCredit Capital Markets LLC
|
| Trustee: | Bank of New York Mellon, London Branch
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP
|
| Counsel to underwriters: | Linklaters LLP
|
| Coupon: | 6.547% starting rate; SOFR plus 298 bps starting June 20, 2033
|
| Price: | Par
|
| Yield: | 6.547%
|
| Spread: | Treasuries plus 280 bps
|
| Call features: | At par on June 20, 2033
|
| Trade date: | June 12
|
| Settlement date: | June 20
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Cusip: | 404280DX4
|
|
|
© 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.
