HSBC USA Inc. Announces Redemption of $850 Million Preferred and Trust Preferred Securities
May 27 2015 - 4:05PM
Business Wire
HSBC USA Inc. (“HSBC USA”) is announcing the redemption, in
whole, of the following preferred series:
- 6,000,000 depositary shares each
representing a one-fourth interest in a share of Adjustable Rate
Cumulative Preferred Stock, Series D (ticker symbol: HUSI-PR D);
and
- 3,000,000 shares of $2.8575 Cumulative
Preferred Stock (ticker symbol: HUSI-PR Z).
The preferred securities are listed on the New York Stock
Exchange under the above ticker symbols. The redemption date for
each series of preferred is June 26, 2015. The cash redemption
price payable for each series of preferred on the redemption date
will equal:
- For the 6,000,000 depositary shares,
$25 liquidation preference per depositary share (which is
equivalent to $100 liquidation preference per share of Adjustable
Rate Cumulative Preferred Stock, Series D), plus an amount equal to
the accrued and accumulated but unpaid dividends thereon to but
excluding the redemption date; and
- For the 3,000,000 shares of $2.8575
Cumulative Preferred Stock, $50 liquidation preference per share,
plus an amount equal to the dividends accrued and accumulated but
unpaid to the redemption date.
HSBC USA is also announcing the redemption, in whole, of the
following three series of its capital securities:
- $200,000,000 aggregate liquidation
amount of 7.808% capital securities;
- $200,000,000 aggregate liquidation
amount of 8.38% capital securities; and
- $150,000,000 aggregate liquidation
amount of 7.75% capital trust pass-through securities.
The redemption date for each series of capital securities is
June 26, 2015. The cash redemption price payable for each redeemed
capital security on the redemption date will equal:
- For the 7.808% capital securities,
100.781% of the liquidation amount of $1,000 per capital security,
plus an amount equal to the accrued and unpaid distributions
thereon to the redemption date;
- For the 8.38% capital securities,
100.84% of the liquidation amount of $1,000 per capital security,
plus an amount equal to the accrued and unpaid distributions
thereon to the redemption date; and
- For the 7.75% capital trust
pass-through securities, 100.732% of the liquidation amount of
$1,000 per capital security, plus an amount equal to the accrued
and unpaid distributions thereon to the redemption date.
The redemptions announced today were approved by the Federal
Reserve Board as part of HSBC North America’s planned capital
actions pursuant to the 2015 Comprehensive Capital Analysis and
Review (CCAR), and reflect the strategy of HSBC North America
Holding Inc. and HSBC USA of continuing to optimize their capital
structures according to U.S. Basel III.
The redemption of the Series D depositary shares is a result of
the concurrent redemption by HSBC USA of its Adjustable Rate
Cumulative Preferred Stock, Series D. The redemption of the 7.808%
capital securities is a result of the concurrent redemption by HSBC
USA of its 7.808% Junior Subordinated Deferrable Interest
Debentures due 2026. The redemption of the 8.38% capital securities
is a result of the concurrent redemption by HSBC USA of its 8.38%
Junior Subordinated Deferrable Interest Debentures due 2027. The
redemption of the 7.75% capital securities is a result of the
concurrent redemption by HSBC USA of its 7.75% Junior Subordinated
Debt Securities due 2026.
In light of the redemption of the Series D depositary shares and
the $2.8575 Cumulative Preferred Stock on June 26, 2015, including
payment of accrued and unpaid dividends, the dividend payments
scheduled for July 1, 2015 will not be made. Beginning on the
redemption date, the redeemed securities will no longer be
considered outstanding and distributions will no longer accrue on
such securities.
HSBC Bank USA, N.A. is the depositary for the Series D
depositary shares, the transfer agent for the $2.8575 Cumulative
Preferred Stock, and the paying agent for the following
securities:
- 7.808% capital securities; and
- 8.38% capital securities.
DB Services Americas, Inc. is the paying agent for the 7.75%
capital trust pass-through securities.
Notes to editors:
HSBC USA Inc. and its subsidiaries including HSBC Bank
USA, N.A. (collectively, HUSI) offer a full range of traditional
banking products and services to individuals, including high net
worth individuals, small businesses, corporations, institutions and
governments. HSBC USA Inc. is a subsidiary of HSBC North America
Holdings Inc.
Certain statements in this press release are "forward-looking
statements" within the meaning of the rules and regulations of the
U.S. Securities and Exchange Commission. These statements are based
on management's current expectations and are subject to uncertainty
and changes in circumstances. Actual results and capital and other
financial condition may differ materially from those included in
these statements due to a variety of factors, including without
limitation the actual completion of the announced redemptions, the
completion of the final analysis of the capital impact on HSBC USA
Inc. as a result of the redemptions and the factors contained in
HSBC USA Inc.'s filings with the U.S. Securities and Exchange
Commission, including without limitation the "Risk Factors" section
of HSBC USA Inc.'s 2014 Annual Report on Form 10-K. Precautionary
statements included in such filings should be read in conjunction
with this release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150527006466/en/
Media inquiries:HSBC USA
Inc.Rob Sherman, +1
212-525-6905robert.a.sherman@us.hsbc.com
HSBC (NYSE:HSBC)
Historical Stock Chart
From Aug 2024 to Sep 2024
HSBC (NYSE:HSBC)
Historical Stock Chart
From Sep 2023 to Sep 2024