New Issue: HSBC prices $7.98 million callable leveraged steepener notes due 2029

By Marisa Wong

Madison, Wis., May 20 - HSBC USA Inc. priced $7.98 million of callable leveraged steepener notes due May 21, 2029, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is 8% for the first year. After that, the interest rate is equal to 6.25 times the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate, subject to a cap of 8% and a floor of 0%. Interest is payable quarterly.

The payout at maturity will be par plus accrued interest.

The notes are callable on May 21, 2015 and May 21, 2022.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.

Issuer:	HSBC USA Inc.
Issue:	Callable leveraged steepener notes
Amount:	$7,983,000
Maturity:	May 21, 2029
Coupon:	8% for first year; after that, 6.25 times spread of 30-year CMS rate over five-year CMS rate; cap of 8%, floor of 0%; payable quarterly
Price:	Par of $1,000
Payout at maturity:	Par plus accrued interest
Call option:	At par plus accrued interest on May 21, 2015 or May 21, 2022
Pricing date:	May 16
Settlement date:	May 21
Agent:	HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
Fees:	3.5%
Cusip:	40432XZ79

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