By Cristal Cody
Tupelo, Miss., Sept. 15 – HSBC Holdings plc priced $2 billion of 2.013% fixed-to-floating rate senior notes due Sept. 22, 2028 (A2/A-/A+) on Tuesday at a spread of Treasuries plus 155 basis points, according to a market source.
Initial price talk was in the 170 bps to 175 bps over Treasuries area.
The coupon will reset to a floating rate of SOFR plus 173.2 bps after the initial fixed-rate period.
HSBC Securities (USA) Inc. was the bookrunner.
Proceeds will be used to fund a tender offer started on Tuesday. Any remaining proceeds will be used for general corporate purposes.
The banking and financial services group is based in London.
| Issuer: | HSBC Holdings plc
|
| Amount: | $2 billion
|
| Description: | Fixed-to-floating rate senior notes
|
| Maturity: | Sept. 22, 2028
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Coupon: | 2.013%; resets to floating rate of SOFR plus 173.2 bps
|
| Spread: | Treasuries plus 155 bps
|
| Trade date: | Sept. 15
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 170 bps-175 bps area
|
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