New Issue: HSBC sells $24.5 million capped fixed-to-floaters with 2.5% start rate

By Marisa Wong

Morgantown, W.Va., Nov. 20 – HSBC USA Inc. priced $24.5 million of fixed-to-floating notes Nov. 17, 2022, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be fixed at 2.5% for the first two years. After that, the notes will bear interest at Libor plus 57 basis points, subject to a floor of zero and a cap of 3%. Interest will be 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:	$24.5 million
Maturity:	Nov. 17, 2022
Coupon:	2.5% initially; beginning Nov. 17, 2020, Libor plus 57 bps, subject to 0% floor, 3% cap; payable quarterly
Price:	Par
Payout at maturity:	Par
Pricing date:	Nov. 14
Settlement date:	Nov. 17
Underwriter:	HSBC Securities (USA) Inc.
Fees:	0.45%
Cusip:	40435FLG0

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