New Issue: HSBC sells $1.5 billion of senior notes due 2027 in two parts

By Cristal Cody

Chicago, Feb. 27 – HSBC USA Inc. priced $1.5 billion of senior notes (A2/A-/A+) on Monday, both with a March 4, 2027 maturity date, according to an FWP filing with the Securities and Exchange Commission and more information from a market source.

The deal includes $500 million of floating-rate notes that will have a coupon based on SOFR plus 96 basis points.

The second $1 billion tranche will have a 5.294% fixed coupon. The notes priced at Treasuries plus 80 basis points. Initial price talk started in the Treasuries plus 105 bps area.

Both parts priced at par.

HSBC Securities (USA) Inc. was listed as the sole bookrunner.

Proceeds will be used for general corporate purposes, which may include investments in and extensions of credit to subsidiaries, financing future acquisitions of financial institutions as well as banking and other assets and the redemption of certain outstanding securities.

HSBC USA is a New York-based subsidiary of HSBC Holdings, a London-based banking and financial services group.

Issuer:	HSBC USA Inc.
Amount:	$1.5 billion
Maturity:	March 4, 2027
Bookrunner:	HSBC Securities (USA) Inc.
Co-managers:	AmeriVet Securities, Inc., Apto Partners, LLC, Blaylock Van, LLC, BofA Securities, Inc., Cabrera Capital Markets LLC, CastleOak Securities, LP, CAVU Securities LLC, Citigroup Global Markets Inc., Great Pacific Securities, Guzman & Co., Independence Point Securities LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Multi-Bank Securities, Inc., Roberts & Ryan, Inc., Stern Brothers & Co, Telsey Advisory Group LLC and Tigress Financial Partners, LLC
Trustee:	Computershare Trust Co., NA
Counsel to issuer:	Mayer Brown LLP, DLA Piper LLP
Counsel to underwriters:	Cravath, Swaine & Moore LLP
Trade date:	Feb. 26
Settlement date:	March 4
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: A+
Distribution:	SEC registered
Floaters
Amount:	$500 million
Issue:	Floating-rate senior notes
Coupon:	SOFR plus 96 bps
Price:	Par
Yield:	SOFR plus 96 bps
Price talk:	SOFR plus equivalent spread
Cusip:	40428HA51
Fixed-rate notes
Amount:	$1 billion
Issue:	Senior notes
Coupon:	5.294%
Price:	Par
Yield:	5.294%
Spread:	SOFR plus 80 bps
Price talk:	Treasuries plus 105 bps area
Cusip:	40428HA44

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