QUANTUMONLINE.COM SECURITY DESCRIPTION: HSBC Holdings plc 6.547% Fixed Rate/Floating Rate Subordinated Unsecured Notes due 2034 redeemable at the issuer's option on or after 06/20/2033 at $25 per note plus accrued and unpaid interest, and maturing 06/20/2034. Interest distributions of 6.547% per annum ($1.63675) per annum or $0.818375 semi-annually) will be semi-annually on 6/20 & 12/20 to holders of record on the record date that will be the 15th calendar day preceding each Interest Payment Date (NOTE: the ex-dividend date is one business day prior to the record date) Until June 20, 2023. Including the June 20th payment date until maturity, the notes will pay a floating rate of the Compounded Daily SOFR plus 2.98% per annum paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date.
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
This security is possibly subject to an early call before 06/30/2033 at $25.00 (100%) of their principal amount plus accrued and unpaid interest within 90 days of a tax event. This security is possibly subject to an early call as a result of the occurrence of a Capital Disqualification Event, in which there is a change in the regulatory classification of the Notes that results in or will result in: either (i) their exclusion in whole or in part from the regulatory capital of the HSBC Group; or (ii) their reclassification in whole or in part as a form of regulatory capital of the HSBC Group that is lower than Tier 2 capital. (see the prospectus for further information).
This security was rated as Baa1 by Moody’s and BBB by S&P at the date of its IPO. The Notes are unsecured, subordinated obligations of the company and will rank junior to the company's senior debt, equally with all existing and future unsecured, subordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
