Published on 3/10/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $10.59 million seven-year fixed-to-floating notes on CPI
By Susanna Moon
Chicago, March 10 - HSBC USA Inc. priced $10.59 million of inflation-linked fixed-to-floating-rate notes due March 24, 2018, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 3.75% for the first year. After that, the rate will be equal to the year-over-year change in the Consumer Price Index plus 150 basis points, up to a maximum coupon of 7%. Interest is payable monthly and cannot be less than zero.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Inflation-linked fixed-to-floating notes
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Underlying index: | Consumer Price Index
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Amount: | $10,588,000
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Maturity: | March 24, 2018
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Coupon: | 3.75% for one year; thereafter, year-over-year change in CPI plus 150 bps, with cap of 7% and floor of zero; payable monthly
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Price: | Variable
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Payout at maturity: | Par
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Pricing date: | March 8
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Settlement date: | March 24
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Agent: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 4042K1FE8
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