HSBC Finance offers new notes in exchange for six series of notes

By Angela McDaniels

Tacoma, Wash., Oct. 28 - HSBC Finance Corp. has begun private exchange offers for six series of its notes, according to company news releases.

The company is offering new fixed-rate senior subordinated notes due Jan. 15, 2021 in both offers.

In the first offer, the company will accept any and all of its 7.625% senior notes due 2032 and 7.35% senior notes due 2032.

The second offer is for the company's 5.5% senior notes due 2016, 5% senior notes due 2015, 5.25% senior notes due 2014 and 5.25% senior notes due April 15, 2015. These notes are listed in order of acceptance priority level.

The company will accept any and all 5.5% notes tendered. For the remaining notes, the principal amount accepted will be $1.5 billion minus the principal amount of 5.5% notes accepted.

The total exchange ratio for each series of the notes will be based on a fixed-spread pricing formula and will be calculated at 2 p.m. ET on Nov. 10. This is also when the coupon for the new notes will be calculated.

The total exchange ratio will include an early tender payment payable to holders who tender notes by 5 p.m. ET on Nov. 12.

The exchange offers will expire at 8 a.m. ET on Nov. 30.

The offers are only being made to qualified institutional buyers and persons who are not U.S. persons, both as defined under the Securities Act of 1933.

The information agent is Global Bondholder Services Corp. (212 430-3774 or 866 470-4300).

The financing arm of financial services company HSBC Holdings plc is based in Mettawa, Ill.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.