New Issue: HSBC FixedReset 6.60%+485

Issue: HSBC Bank Canada Non-Cumulative 5-Year Rate Reset Class 1 Preferred Shares Series E

Size: 5-million shares (=$125-million) + greenshoe 3-million shares (=$75-million)

Dividends: $1.65 p.a. (=6.60%); reset every Exchange Date to 5-Year GOC + 485bp. First dividend payable 2009-6-30 for $0.4125 based on Closing Date.

Closing Date: 2009-3-31

Exchange Dates: 2014-6-30 and every five years thereafter

Exchange: To and from Series F (“Floaters”), which pay 90-day bills + 485bp, reset quarterly

Redemption: Every Exchange Date at $25.00. Floaters are also redeemable at $25.50 at any other valid time; it is not clear to me whether they may be redeemed in the period 2014-6-30 to 2019-6-30:

The Series F Preferred Shares will not be redeemable prior to June 30, 2019.

$25.50 in the case of redemptions on any other date on or after June 30, 2014 …

Update: Press Release. I am advised that the issue size has been bumped to 7-million shares + 3-million greenshoe.

Update: Press release on size increase

Update, 2009-4-10: Greenshoe exercised in full, issue size 10-million shares = $250-million.

4 Responses to “New Issue: HSBC FixedReset 6.60%+485”

  1. GAndreone says:

    The wording appears to change the Call option from a European type to an American style option after June 30, 2014. That certainly increases the value of the Call option!

  2. […] has had repercussions for the new issue announced last week, which had been assigned the TSX ticker symbol […]

  3. […] resolves the confusion previously noted on PrefBlog. The issue was announced on March 23, with size bumped from $125-million to $175-million […]

  4. […] was the Fixed Reset 6.60%+485 issuee that had originally been scheduled to close on March 31 but had to be pulled when S&P downgraded HSBC Holdings, its parent. It would appear that HSBC […]

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