New Issue: HSBC prices $309,000 fixed-to-floating notes due 2023 linked to CPI

By Jennifer Chiou

New York, Sept. 25 - HSBC USA Inc. priced $309,000 of fixed-to-floating notes due Sept. 26, 2023 linked to the Consumer Price Index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is 4.5% for the first year. After that, the rate equals the annual inflation rate plus 125 basis points, subject to a minimum rate of zero and a maximum rate of 7% per year. The annual inflation rate will be determined by the change in the level of the index over the one-year period that ends three months prior to the related interest payment date. 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 notes
Underlying index:	Non-Seasonally Adjusted U.S. City Average All Items Consumer Price Index for All Urban Consumers
Amount:	$309,000
Maturity:	Sept. 26, 2023
Coupon:	4.5% for first year; after Sept. 26, 2014, annual inflation rate plus 125 bps, subject to minimum rate of zero and maximum rate of 7% per year; payable monthly
Price:	Par
Payout at maturity:	Par
Pricing date:	Sept. 23
Settlement date:	Sept. 26
Agent:	HSBC Securities (USA) Inc.
Fees:	1.016%
Cusip:	40432XKQ3

© 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.