New Issue: HSBC prices $5.35 million fixed-to-floaters with 1.5% initial rate

By Toni Weeks

San Luis Obispo, Calif., July 7 – HSBC USA Inc. priced $5.35 million of fixed-to-floating notes due July 20, 2020, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be 1.5% for the first year. After that, it will be Libor plus 80 basis points, up to a maximum rate of 3.5% in the second year, 3.75% in the third year, 4.5% in the fourth year and 5.5% in the fifth year. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Fixed-to-floating notes
Amount:	$5.35 million
Maturity:	July 20, 2020
Coupon:	1.5% for first year; after that, Libor plus 80 bps, capped at 3.5% in second year, 3.75% in third year, 4.5% in fourth year and 5.5% in fifth year; payable quarterly with floor of zero
Price:	Par
Payout at maturity:	Par
Pricing date:	July 2
Settlement date:	July 21
Agent:	HSBC Securities (USA) Inc.
Fees:	0.393%
Cusip:	40433B4B1

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