New Issue: HSBC sells $7.71 million fixed-to-floaters with 3% initial rate, 6% cap

By Susanna Moon

Chicago, Dec. 14 - HSBC USA Inc. priced $7.71 million of fixed-to-floating notes due Dec. 15, 2014, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is 3% for the first year. After that it will be Libor plus 100 basis points, with a maximum rate of 6% per year and a minimum rate of 1% per year in each period. Interest is payable quarterly.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Fixed-to-floating notes
Amount:	$7,712,000
Maturity:	Dec. 15, 2014
Coupon:	3% for one year; then Libor plus 100 bps, subject to cap of 6% and floor of 1%; payable quarterly
Price:	Variable prices
Payout at maturity:	Par
Pricing date:	Dec. 12
Settlement date:	Dec. 15
Agent:	HSBC Securities (USA) Inc.
Fees:	0.323% (average)
Cusip:	4042K1TT0

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