Published on 3/5/2019 in the Prospect News Investment Grade Daily.
New Issue: HSBC Holdings sells $3 billion of floaters, fixed-to-floating notes
By Cristal Cody
Tupelo, Miss., March 5 – HSBC Holdings plc priced $3 billion of senior notes (A2/A/AA-) in two tranches on Monday, according to FWP filings with the Securities and Exchange Commission.
The company sold $500 million of six-year floating-rate notes at par to yield Libor plus 123 basis points.
HSBC priced $2.5 billion of 3.803% six-year fixed-to-floating rate notes at par to yield a spread of Treasuries plus 128 bps. The rate will reset March 11, 2024 to a floating rate of Libor plus 121.1 bps.
HSBC Securities (USA) Inc. was the bookrunner.
Proceeds will be used for general corporate purposes.
The London-based banking and financial services group plans to use the proceeds for general corporate purposes.
| Issuer: | HSBC Holdings plc
|
| Amount: | $3 billion
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| Description: | Senior notes
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| Bookrunner: | HSBC Securities (USA) Inc.
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| Co-managers: | Banco de Sabadell, SA, CIBC World Markets Corp., Citigroup Global Markets Inc., Commerz Markets LLC, Danske Markets Inc., ING Financial Markets LLC, Lloyds Securities Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, SMBC Nikko Securities America, Inc. and UniCredit Capital Markets LLC
|
| Trade date: | March 4
|
| Settlement date: | March 11
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| Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: AA-
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| Distribution: | SEC registered
|
|
|
| Six-year floaters
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| Amount: | $500 million
|
| Description: | Floating-rate notes
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| Maturity: | March 11, 2025
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| Coupon: | Libor plus 123 bps
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| Price: | Par
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| Yield: | Libor plus 123 bps
|
| Call feature: | March 11, 2024 at par
|
|
|
| Six-year notes
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| Amount: | $2.5 billion
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| Description: | Fixed-to-floating rate notes
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| Maturity: | March 11, 2025
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| Coupon: | 3.803%; resets March 11, 2024 to floating rate of Libor plus 121.1 bps
|
| Price: | Par
|
| Yield: | 3.803%
|
| Spread: | Treasuries plus 128 bps
|
| Call feature: | March 11, 2024 at par
|
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