By Cristal Cody
Chicago, May 17 – HSBC Holdings plc sold a $5 billion two-part offering of fixed-to-floating rate notes on Monday, a market source reported.
The bank priced $2 billion of four-year notes, which start with a 0.976% coupon for a Treasuries plus 65 basis points spread.
Talk on the tranche had been in the Treasuries plus 95 bps area.
The notes will reset to a floating rate of SOFR plus 70.75 bps and are callable after three years.
A second tranche of $3 billion of notes due May 24, 2032 was sold with a starting fixed rate of 2.804%.
The notes priced with a Treasuries plus 117 bps spread, lower than talk in the Treasuries plus 140 bps area.
The notes will reset to a floating rate based on SOFR plus 118.7 bps and can be called after 10 years.
HSBC Securities (USA) Inc. is the bookrunner of the notes, for which proceeds will be used for general corporate purposes.
The issuer is a banking and financial services group based in London.
| Issuer: | HSBC Holdings plc
|
| Issue: | Fixed-to-floating rate notes
|
| Amount: | $5 billion
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Trade date: | May 17
|
|
|
| 2025 notes
|
| Amount: | $2 billion
|
| Maturity: | May 24, 2025
|
| Coupon: | 0.976% initial rate; resets to SOFR plus 70.75 bps
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Three years
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2032 notes
|
| Amount: | $3 billion
|
| Maturity: | May 24, 2032
|
| Coupon: | 2.804% initial rate; converts to SOFR plus 118.7 bps
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | 10 years
|
| Price talk: | Treasuries plus 140 bps area
|
|
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