By Susanna Moon
Chicago, Dec. 2 - HSBC USA Inc. priced $415,000 of leveraged steepener notes due Dec. 20, 2021 linked to the 10-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 7.25% for the first year. After that, it will be 4.5 times the spread of the 10-year CMS rate over the two-year CMS rate, up to a maximum rate of 7.25%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on the call date of Dec. 20, 2016.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged steepener notes
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Amount: | $415,000
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Maturity: | Dec. 20, 2021
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Coupon: | 7.25% for one year; then 4.5 times spread of 10-year CMS rate over two-year CMS rate, capped at 7.25%, floor of zero; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on Dec. 20, 2016
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Pricing date: | Nov. 30
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Settlement date: | Dec. 20
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.701%
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Cusip: | 4042K1TZ6
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