HSBC passes resolution for sterling notes; no quorum for two series

Chicago, Oct. 29 – HSBC gave an update on the extraordinary resolutions that were subject to a vote on three series of notes in an announcement on Friday.

Noteholder meetings were being held starting at 5 a.m. ET on Friday.

The meetings were held to approve proposed amendments for benchmark rate replacement.

Originally, there were five series of notes. Two series of notes were subject to resolutions that passed at the first noteholder meeting.

The five bonds were issued by HSBC Holdings plc, HSBC Bank plc and HSBC Bank Capital Funding (Sterling 1) LP.

Sterling notes: passed

Of the three series left, the extraordinary resolution relating to the sterling notes was passed and will be implemented with effect from Friday.

Specifically, it was the £1 billion outstanding 2.256% resettable notes due November 2026 (ISIN: XS1716248197) issued by HSBC Holdings that were part of the noteholder meetings.

The amendment replaces the Libor-linked one-year mid-swap rate with a Sonia-linked mid-swap rate.

Fallbacks will be added related to Sonia.

The adjustment spread will be based on the historical five-year median difference between sterling Libor and Sonia.

Still no quorum

The noteholder meetings for the two Singapore dollar-denominated notes still failed to reach a quorum.

The extraordinary resolutions related to the notes HSBC Holdings issued for S$1 billion outstanding 4.7% perpetual subordinated contingent convertible securities (ISIN: XS1624509300) and for S$750 million outstanding perpetual subordinated contingent convertible securities (ISIN: XS1882693036).

The issuer was seeking to replace the five-year Singapore dollar swap offer rate (SOR) by the Singapore overnight rate average (SORA).

Fallbacks were to be added dealing with a potential benchmark event with respect to SORA.

As a result of the lack of quorum, the modifications will not be implemented.

Details

No consent fee was to be paid with any consent solicitation.

The solicitation agent is HSBC Bank (+44 20 7992 6237, LM_EMEA@hsbc.com).

The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, hsbc@lucid-is.com).

The banking and financial services company is based in London.

© 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.