New Issue: HSBC prices $9.65 million callable leveraged steepener notes due 2029

By Toni Weeks

San Luis Obispo, Calif., June 26 – HSBC USA Inc. priced $9.65 million of callable leveraged steepener notes due June 27, 2029, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is 7% for the first year. After that, the interest rate is equal to 4.5 times the spread of the 10-year Constant Maturity Swap rate over the two-year CMS rate, subject to a cap of 7% and a floor of 0%. Interest is payable quarterly.

The payout at maturity will be par plus accrued interest.

The notes are callable on June 27, 2015 and June 27, 2022.

HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.

Issuer:	HSBC USA Inc.
Issue:	Callable leveraged steepener notes
Amount:	$9,654,000
Maturity:	June 27, 2029
Coupon:	7% for first year; after that, 4.5 times spread of 10-year CMS rate over two-year CMS rate; cap of 7%, floor of 0%; payable quarterly
Price:	Par of $1,000
Payout at maturity:	Par plus accrued interest
Call option:	At par plus accrued interest on June 27, 2015 and June 27, 2022
Pricing date:	June 24
Settlement date:	June 27
Agent:	HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
Fees:	3.5%
Cusip:	40433BEJ3

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