HSBC plans 10-year fixed-to-floaters with 3.25% initial rate, 6% cap

By Toni Weeks

San Luis Obispo, Calif., July 15 - HSBC USA Inc. plans to price fixed-to-floating notes due July 26, 2023, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 3.25% for the first 18 months. After that, it will be equal to Libor plus 100 basis points, up to a maximum rate of 6%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

The notes will settle on July 26.

The Cusip number is 40432XHZ7.

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