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HSBC Bank plc (NYSE:HSBC) started on Monday a tender offer to buy back six series of subordinated notes, totaling GBP 1.98B of notes denominated in pounds sterling and $300M of notes denominated in U.S. dollars.
Along with the offers to repurchase the notes, HSBC (HSBC) intends to launch a proposed new issuance of GGP and euro-denominated subordinated unsecured debt securities in one or more series.
The company expects to announce its decision on whether to accept valid tenders of the notes under the offers on Nov. 15, 2022. The price payable per GBP 1,000 or $1,000 will be determined at the pricing time at the pricing date, expected to be Nov. 14.
The offer expires on Nov. 14, 5:00 PM New York City time, unless extended.
Fixed spreads on the six series of notes covered by the tender offers range from 95 basis points for GBP 300M of 6.500% notes due July 2023 to 235 bps for GBP 350M of 5.375% notes due November 2030 as well as GBP 500M of 5.375% notes due August 2033.
The other series are: $300M of 7.650% notes due May 2025 (195 bps), GBP 225M of 6.250% notes due January 2041; and GBP 600M 4.750% notes due March 2046.
Last week, HSBC (HSBC) shareholder Ping An Insurance (OTCPK:PNGAY) (OTCPK:PIAIF) issued a statement urging the bank to radically reduce its costs, including through lowering headcount and IT and global headquarters costs.