New Issue: HSBC sells $10.59 million seven-year fixed-to-floating notes on CPI

By Susanna Moon

Chicago, March 10 - HSBC USA Inc. priced $10.59 million of inflation-linked fixed-to-floating-rate notes due March 24, 2018, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 3.75% for the first year. After that, the rate will be equal to the year-over-year change in the Consumer Price Index plus 150 basis points, up to a maximum coupon of 7%. Interest is payable monthly 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:	Inflation-linked fixed-to-floating notes
Underlying index:	Consumer Price Index
Amount:	$10,588,000
Maturity:	March 24, 2018
Coupon:	3.75% for one year; thereafter, year-over-year change in CPI plus 150 bps, with cap of 7% and floor of zero; payable monthly
Price:	Variable
Payout at maturity:	Par
Pricing date:	March 8
Settlement date:	March 24
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	4042K1FE8

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