Published on 6/9/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.67 million fixed-to-floating notes linked to CPI
By Toni Weeks
San Diego, June 9 - HSBC USA Inc. priced $4.67 million of fixed-to-floating-rate notes due June 10, 2019 linked to the Consumer Price Index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 4% for the first year. After that, the rate will be equal to the year-over-year change in the Consumer Price Index plus 125 basis points, subject to a maximum interest rate of 7%.
Interest is payable monthly and cannot be less than zero.
The payout at maturity will be par plus the final interest payment.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Fixed-to-floating-rate notes
|
Underlying index: | Consumer Price Index
|
Amount: | $4,673,000
|
Maturity: | June 10, 2019
|
Coupon: | Initially 4%; beginning June 10, 2012, the year-over-year change in the Consumer Price Index plus 125 bps, floor of 0%, cap of 7%, payable monthly
|
Price: | Variable prices
|
Payout at maturity: | Par
|
Pricing date: | June 7
|
Settlement date: | June 10
|
Underwriter: | HSBC Securities (USA) Inc.
|
Fees: | 1.209%
|
Cusip: | 4042K1HX4
|
© 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.