By Aleesia Forni
Virginia Beach, Feb. 26 – HSBC USA Inc. sold a $3.3 billion three-part offering of senior notes (A2/A/) on Thursday, according to an informed source.
There was $300 million of floating-rate notes due 2017 priced at par to yield Libor plus 45 basis points.
The notes priced on top of talk.
A $1.25 billion tranche of 1.7% notes due 2018 sold at 70 bps over Treasuries. Pricing was at 99.907 to yield 1.732%.
Price talk was set in the 72 bps area. The notes were guided in the high-70 bps area over Treasuries.
A $1.75 billion tranche of 2.35% notes due 2020 sold at 99.902 to yield 2.371%, or Treasuries plus 83 bps.
Pricing was at the tight end of the 85 bps area over Treasuries talk. Guidance was set at Treasuries plus the low-90 bps area.
HSBC Securities (USA) Inc. was the bookrunner.
The bank plans to use the proceeds for general corporate purposes.
HSBC USA is subsidiary of HSBC Holdings, a London-based banking and financial services group.
| Issuer: | HSBC USA Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.3 billion
|
| Bookrunner: | HSBC Securities (USA) Inc.
|
| Trade date: | Feb. 26
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $300 million
|
| Maturity: | March 3, 2017
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
| Price talk: | Libor plus 45 bps
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 5, 2018
|
| Coupon: | 1.7%
|
| Price: | 99.907
|
| Yield: | 1.732%
|
| Spread: | 70 bps
|
| Price talk: | 72 bps, tightened from high-70 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 5, 2020
|
| Coupon: | 2.35%
|
| Price: | 99.902
|
| Yield: | 2.371%
|
| Spread: | 83 bps
|
| Price talk: | 85 bps area, tightened from low-90 bps area
|
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