HSBC to redeem four series of preferreds totaling $1.84 billion

By Marisa Wong

Morgantown, W.Va., May 16 – HSBC USA Inc. announced it will redeem $1,265,000,000 of its preferred securities on June 30.

The following preferred securities will be redeemed in full in cash:

• 20.7 million shares of floating-rate non-cumulative preferred stock, series F (Symbol: HUSI-PR F), to be redeemed at $25 liquidation preference per preferred share, plus accrued but unpaid dividends for the then-current dividend period to but excluding the redemption date;

• 373,750 shares of floating-rate non-cumulative preferred stock, series G, and 14.95 million depositary shares, each representing one-fortieth of a share of series G preferred stock (Symbol: HUSI-PR G), to be redeemed at $25 liquidation preference per depositary share (equivalent to $1,000 liquidation preference per preferred share), plus accrued but unpaid dividends for the then-current dividend period to but excluding the redemption date; and

• 373,750 shares of 6.5% non-cumulative preferred stock, series H, and 14.95 million depositary shares, each representing one-fortieth of a share of 6.5% series H preferred stock (Symbol: HUSI-PR H), to be redeemed at $25 liquidation preference per depositary share (equivalent to $1,000 liquidation preference per preferred share), plus accrued but unpaid dividends for the then-current dividend period to but excluding the redemption date

In light of the redemption of the series F shares and of the series G and H depositary shares, including payment of accrued and unpaid dividends, the dividend payments scheduled for July 1 will not be made, according to a company press release.

Also on June 30, HSBC Finance Corp. will redeem its $575 million of 6.36% non-cumulative preferred stock, series B, according to a separate announcement.

The issuer will redeem in full its 575,000 series B preferreds and 23 million depositary shares, each representing one-fortieth of a 6.36% series B preferred share (Symbol: HSFC PR B).

The cash redemption price will be $25 liquidation preference per depositary share (equivalent to $1,000 liquidation preference per series B preferred share), plus accrued dividends to but excluding the redemption date.

HSBC Bank USA, NA is the registrar and transfer agent for each series of preferred securities and is the depositary for the series B, G and H depositary shares.

HSBC USA offers a range of banking products and services to individuals, small businesses, corporations, institutions and governments. HSBC Finance owns and services a portfolio of residential real estate loans. The New York-based issuers are subsidiaries of HSBC North America Holdings Inc.

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