New Issue: HSBC prices $2 billion of fixed-to-floating-rate tier 2 subordinated notes due 2033

By William Gullotti and Cristal Cody

Buffalo, N.Y., Oct. 27 – HSBC Holdings plc priced a $6 billion three-part offering of fixed-to-floating rate notes on Wednesday that included a $2 billion tranche of tier 2 notes due 2033 (Baa1/BBB/A-), according an FWP filing with the Securities and Exchange Commission.

The notes priced with an 8.113% starting rate, at a spread of 410 bps over Treasuries. The tier 2 notes were talked in the Treasuries plus 430 bps area.

The floating-rate period begins one year prior to maturity, which will also be sole par call date available at the option of the issuer. Interest will reset to SOFR plus 425 bps.

The 2033 notes may also be redeemed at par for a capital disqualification event or tax event redemption.

HSBC Securities (USA) Inc. is the bookrunner.

HSBC Holdings is a London-based banking and financial services group.

Issuer:	HSBC Holdings plc
Amount:	$2 billion
Issue:	Fixed-to-floating-rate subordinated notes
Maturity:	Nov. 3, 2033
Bookrunner:	HSBC Securities (USA) Inc.
Co-managers:	J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Bank of Ireland, Bankinter SA, Bank of Communications Co., Ltd., Hong Kong Branch, BBVA Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., Erste Group Bank AG, Intesa Sanpaolo SpA, KBC Securities USA LLC, Lloyds Securities Inc., nabSecurities, LLC, Nordea Bank Abp, Rabo Securities USA, Inc., Scotia Capital (USA) Inc., Société Générale, Swedbank AB (publ), U.S. Bancorp Investments, Inc., Westpac Banking Corp., Academy Securities, Inc., American Veterans Group, PBC, Apto Partners, LLC, Bancroft Capital, LLC, Blaylock Van, LLC, Cabrera Capital Markets LLC, CAVU Securities, LLC, Drexel Hamilton, LLC, Great Pacific Securities, Guzman & Company, Independence Point Securities LLC, MFR Securities, Inc., Mischler Financial Group, Inc., Multi-Bank Securities, Inc., R. Seelaus & Co., LLC, Samuel A. Ramirez & Company, Inc., Siebert Williams Shank & Co., LLC, Stern Brothers & Co., Tigress Financial Partners LLC, Tribal Capital Markets, LLC
Trustee:	Bank of New York Mellon, London Branch
Coupon:	8.113% initially; then SOFR plus 425 bps beginning Nov. 3, 2032
Price:	Par
Yield:	8.113%
Spread:	Treasuries plus 410 bps
Call features:	Par call on Nov. 3, 2032
Trade date:	Oct. 26
Settlement date:	Nov. 3
Ratings:	Moody’s: Baa1
	S&P: BBB
	Fitch: A-
Distribution:	SEC registered
Price talk:	Treasuries plus 430 bps area
Cusip:	404280DS5

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