Published on 6/12/2018 in the Prospect News Investment Grade Daily.
New Issue: HSBC sells $3 billion 4.583% fixed-to-floating notes due 2029 at 163 bps spread
By Cristal Cody
Tupelo, Miss., June 12 – HSBC Holdings plc sold $3 billion of 4.583% fixed-to-floating rate senior notes due June 19, 2029 on Tuesday at par to yield Treasuries plus 163 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (A2/A/AA-) were initially talked to price in the Treasuries plus 175 bps to 180 bps area and later guided to print in the Treasuries plus 165 bps spread area, plus or minus 2 bps.
The coupon will reset to a floating rate of Libor plus 153.455 bps after the initial fixed-rate period ends June 19, 2028.
HSBC Securities (USA) Inc. was the bookrunner.
The London-based banking and financial services group plans to use the proceeds for general corporate purposes.
| Issuer: | HSBC Holdings plc
|
| Amount: | $3 billion
|
| Maturity: | June 19, 2029
|
| Description: | Fixed-to-floating rate senior notes
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Co-managers: | Academy Securities, Inc., BBVA Securities Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., ING Financial Markets LLC, Lloyds Securities Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, RB International Markets (USA) LLC and TD Securities (USA) LLC
|
| Coupon: | 4.583%; resets June 19, 2028 to floating rate of Libor plus 153.455 bps
|
| Price: | Par
|
| Yield: | 4.583%
|
| Spread: | Treasuries plus 163 bps
|
| Call feature: | At par on June 19, 2028
|
| Trade date: | June 12
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 175 bps-180 bps area
|
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