By Angela McDaniels
Tacoma, Wash., Dec. 3 - HSBC USA Inc. priced $26.43 million of callable leveraged steepener notes due Dec. 4, 2028 linked to the 30-year Constant Maturity Swap rate and the five-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 10% for the first year. After that, the interest rate will be 4.6 times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum of 10% per year. Interest is payable quarterly.
The payout at maturity will be par.
The notes are callable at par on Dec. 11, 2014 and Dec. 11, 2021.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable leveraged steepener notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $26,429,000
|
| Maturity: | Dec. 4, 2028
|
| Coupon: | 10 for first year; after that, 4.6 times spread of 30-year CMS rate over five-year CMS rate, subject to minimum of zero and maximum of 10% per year; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on Dec. 11, 2014 or Dec. 11, 2021
|
| Pricing date: | Nov. 27
|
| Settlement date: | Dec. 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40432XNT4
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
