By Jennifer Chiou
New York, Oct. 23 - HSBC Bank USA, NA priced callable leveraged steepener certificates of deposit due Oct. 30, 2023, according to a term sheet.
An issue amount was not disclosed.
Interest will accrue at 9% per year for the first year. After that, interest will equal eight times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a floor of 0% and a cap of 15% per year. Interest will be payable quarterly and is capped at 10%. There is a floor of 0%.
Beginning Oct. 30, 2009, the CDs will be callable at par on any interest payment date.
HSBC Securities (USA) Inc. is the agent. Incapital LLC is the distributor.
| Issuer: | HSBC Bank USA, NA
|
| Issue: | Callable leveraged steepener certificates of deposit
|
| Maturity: | Oct. 30, 2023
|
| Coupon: | 9% through the first year; eight times the spread of the 30-year CMS rate over the two-year CMS rate after that, capped at 10% with a floor of 0%; payable quarterly
|
| Price: | Par
|
| Call: | At par on each interest payment date beginning Oct. 30, 2009
|
| Payout at maturity: | Par plus accrued interest
|
| Pricing date: | Oct. 21
|
| Settlement date: | Oct. 30
|
| Agent: | HSBC Bank USA
|
| Fees: | 2.5%
|
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