New Issue: HSBC sells $2 billion 6.875% perpetual subordinated contingent convertibles at par

By Cristal Cody

Eureka Springs, Ark., May 24 – HSBC Holdings plc sold $2 billion of 6.875% perpetual subordinated contingent convertible securities (Baa3//BBB) at par to yield a spread of 547.7 basis points over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

HSBC Securities (USA) Inc. was the bookrunner.

Lead managers were ANZ Securities, Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Commerz Markets LLC, Danske Markets Inc., ING Financial Markets LLC, Lloyds Securities Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Societe Generale, UniCredit Capital Markets LLC and Wells Fargo Securities, LLC

The notes are convertible into a number of shares of HSBC upon the occurrence of a capital adequacy trigger event.

Proceeds will be used for general corporate purposes and to strengthen the company’s capital base.

HSBC is a London-based banking and financial services group.

Issuer:	HSBC Holdings plc
Amount:	$2 billion
Maturity:	Perpetual
Securities:	Subordinated contingent convertible securities
Bookrunner:	HSBC Securities (USA) Inc.
Lead managers:	ANZ Securities, Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Commerz Markets LLC, Danske Markets Inc., ING Financial Markets LLC, Lloyds Securities Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Societe Generale, UniCredit Capital Markets LLC, Wells Fargo Securities, LLC
Co-managers:	BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank AG, London Branch, KBC Securities USA, Inc., Mizuho Securities USA, Inc., Nykredit Bank A/S, SMBC Nikko Securities America, Inc., Standard Chartered Bank
Coupon:	6.875%, resettable every five years after Sept. 29, 2023 at mid-market swap rate plus 75.2 bps
Price:	Par
Yield:	6.875%
Spread:	Treasuries plus 547.7 bps
Call:	Non-callable until June 1, 2021, then every five years
Pricing date:	May 24
Settlement date:	June 1
Ratings:	Moody’s: Baa3
	Fitch: BBB
Distribution:	SEC registered
Stock symbol:	Hong Kong: 5

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