Nomura cancels $3.25 billion of notes due 2026, 2028 and 2031

Chicago, March 29 – Nomura Holdings Inc. worked with the underwriters of its recently priced three-part $3.25 billion note transaction to cancel the issuance that was expected to settle on Monday, according to press releases by the bank.

The bank needs time to evaluate an event that occurred after pricing that could have an impact on the company’s consolidated financial results.

After the impact is known and disclosed, the bank said it will consider a similar issuance.

As previously reported, Nomura had priced $1.25 billion of notes due April 10, 2026; $750 million of notes due April 10, 2028; and $1.25 billion of notes due April 10, 2031 on March 23.

The notes had priced with spreads of 105 basis points, 120 bps and 130 bps over Treasuries, respectively.

On Friday, an event occurred that could subject one of its U.S. subsidiaries to a significant loss arising from transactions with a U.S. client.

The estimated amount of the claim against the client is approximately $2 billion based on market prices on Friday.

As the bank unwinds the transactions and the market prices fluctuate, the estimate is subject to change.

The bank reports that there will be no issues related to the operations or financial soundness of Nomura Holdings or its U.S. subsidiary.

The financial holding company is based in Tokyo.

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