Published on 12/10/2020 in the Prospect News Investment Grade Daily.
New Issue: HSBC prices $1.5 billion of perpetual convertible securities at par to yield 4.6%
By Cristal Cody
Tupelo, Miss., Dec. 10 – HSBC Holdings plc priced $1.5 billion of 4.6% perpetual subordinated contingent convertible securities (Baa3//BBB) on Thursday at par to yield a spread of interpolated Treasuries plus 364.9 basis points, according to an FWP filing with the Securities and Exchange Commission.
The rate on the notes will reset June 17, 2031 and every five years thereafter to Treasuries plus 364.9 bps.
HSBC Securities (USA) Inc. was the bookrunner.
Proceeds will be used to redeem all of the company’s 6.2% non-cumulative dollar preference shares.
The banking and financial services group is based in London.
| Issuer: | HSBC Holdings plc
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| Amount: | $1.5 billion
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| Description: | Subordinated contingent convertible securities
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| Maturity: | Perpetual
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| Bookrunner: | HSBC Securities (USA) Inc.
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| Senior co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
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| Junior co-managers: | ABN Amro Securities (USA) LLC, Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Intesa Sanpaolo SpA, Santander Investment Securities Inc., Scotia Capital (USA) Inc., Skandinaviska Enskilda Banken AB, Siebert Williams Shank & Co., LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Coupon: | 4.6%; resets June 17, 2031 and every five years thereafter to Treasuries plus 364.9 bps
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| Price: | Par
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| Yield: | 4.6%
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| Spread: | Interpolated Treasuries plus 364.9 bps
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| Call feature: | Callable at par during period falling six months before reset date
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| Trade date: | Dec. 10
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| Settlement date: | Dec. 17
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| Ratings: | Moody’s: Baa3
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| Fitch: BBB
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| Distribution: | SEC registered
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