New Issue: HSBC prices $3.37 million fixed-to-floating notes linked to Consumer Price Index

By Angela McDaniels

Tacoma, Wash., May 3 - HSBC USA Inc. priced $3.37 million of fixed-to-floating-rate notes due May 4, 2018 linked to the Consumer Price Index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is 4% for the first year. It will then equal the year-over-year change in the index plus 150 basis points, subject to a floor of zero and a maximum rate of 6% per year. Interest is payable monthly.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Fixed-to-floating-rate notes
Underlying index:	Consumer Price Index
Amount:	$3,372,000
Maturity:	May 4, 2018
Coupon:	4% for first year, then equal to year-over-year change in index plus 150 bps, subject to floor of zero and cap of 6%; payable monthly
Price:	Variable prices
Payout at maturity:	Par
Pricing date:	April 29
Settlement date:	May 4
Agent:	HSBC Securities (USA) Inc.
Fees:	Weighted average of 1.196%
Cusip:	4042K1GG2

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