HSBC plans to price fixed-to-floating notes linked to 10-year CMS rate

By Toni Weeks

San Luis Obispo, Calif., April 21 – HSBC USA Inc. plans to price fixed-to-floating-rate notes due May 8, 2025 linked to the 10-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is 2.5% for the first year. After that, the interest rate will be equal to the 10-year CMS rate, subject to a maximum coupon of 7%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes (Cusip: 40433BU55) will settle on May 8.

HSBC Securities (USA) Inc. is the agent.

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