By Susanna Moon
Chicago, Nov. 23 - HSBC USA Inc. priced $1.5 million of capped callable leveraged steepener notes due Nov. 30, 2021 linked to the 10-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 8% for the first year. After that, it will be 4.5 times the spread of the 10-year CMS rate over the two-year CMS rate minus 25 basis points, up to a maximum rate of 8%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on Nov. 30, 2016.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped callable leveraged steepener notes
|
| Amount: | $1.5 million
|
| Maturity: | Nov. 30, 2021
|
| Coupon: | 8% for one year; then 4.5 times spread of 10-year CMS rate over two-year CMS rate less 25 bps, capped at 8%, floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on Nov. 30, 2016
|
| Pricing date: | Nov. 21
|
| Settlement date: | Nov. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 4042K1TC7
|
© 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.
