HSBC Holdings PLC is planning to sell GBP348 million ($500mn) of bonds backed by U.K. credit card receivables from its Turquoise Credit Card program, according to a Moody's Investor Service presale report.
Moody's has assigned the deal, Series 2011-1, a provisional ratings of 'Aaa' for the Class A floating rate notes and an 'A1' rating for the Class B floating rate notes. Both are structured with a weighted average life of 2.9 years.
HSBC, JPMorgan Chase & Co, and Royal Bank of Scotland Group PLC are acting as joint-lead managers. According to a Dow Jones report the price talk on the notes has also been set in the area of 70 to 75 basis points over the one-month Libor.
The deal follows Barclays Capital credit issue last month from its Gracechurch Card Program, which priced at 1mL+75bps, wider that the post-crisis record tight of 3mL+55bps.