Published on 11/5/2014 in the Prospect News Investment Grade Daily.
New Issue: HSBC USA prices $2.4 billion of senior notes in four tranches
By Aleesia Forni
Virginia Beach, Nov. 5 – HSBC USA Inc. priced $2.4 billion of senior notes (A2/A+/) in four tranches on Wednesday, according to a FWP filed with the Securities and Exchange Commission.
The sale included $350 million of three-year floaters priced at par to yield Libor plus 34 basis points.
There was also a $750 million tranche of 1.5% three-year notes priced at 99.982 to yield 2.388%, or Treasuries plus 55 bps.
The bank also sold $350 million of five-year floating-rate notes at par to yield Libor plus 61 bps.
Finally, $1 billion of 2.375% notes due 2019 priced at 99.939 to yield 2.388%, or Treasuries plus 75 bps.
The notes priced tighter than talk.
HSBC Securities (USA) Inc. was the bookrunner.
The bank plans to use the proceeds for general corporate purposes.
HSBC USA is subsidiary of HSBC Holdings, a London-based banking and financial services group.
| Issuer: | HSBC USA Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.4 billion
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Co-managers: | ABN Amro Securities (USA) LLC, Banca IMI SpA, Barclays, BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Commerz Markets, LLC, Danske Markets Inc., Emirates NBD Capital Ltd., First Gulf Bank PJSC, ING Financial Markets LLC, Lloyds Securities Inc., Macquarie Capital (USA) Inc., BofA Merrill Lynch, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, nabSecurities, LLC, Natixis Securities Americas LLC, RBS Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC
|
| Trade date: | Nov. 5
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $350 million
|
| Maturity: | Nov. 13, 2017
|
| Coupon: | Libor plus 34 bps
|
| Price: | Par
|
| Yield: | Libor plus 34 bps
|
| Price talk: | Libor equivalent to three-year notes
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 13, 2017
|
| Coupon: | 1.5%
|
| Price: | 99.982
|
| Yield: | 2.388%
|
| Spread: | Treasuries plus 55 bps
|
| Price talk: | Treasuries plus 65 bps area
|
|
|
| Five-year floaters
|
| Amount: | $350 million
|
| Maturity: | Nov. 13, 2019
|
| Coupon: | Libor plus 61 bps
|
| Price: | Par
|
| Yield: | Libor plus 61 bps
|
| Price talk: | Libor equivalent to five-year notes
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 13, 2019
|
| Coupon: | 2.375%
|
| Price: | 99.939
|
| Yield: | 2.388%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 85 bps area
|
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