HSBC USA to sell auto-callable notes linked to S&P 500

By Susanna Moon

Chicago, Oct. 1 - HSBC USA Inc. plans to price auto-callable notes due April 30, 2010 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at increasing premiums if the index level is greater than or equal to its initial level on any of three call dates.

The redemption price will be 101.63% to 101.88% of par if the notes are called on Jan. 30, 2009, 103.25% to 103.75% if called on April 30, 2009, 104.88% to 105.63% if called on July 30, 2009, 106.5% to 107.5% if called on Oct. 30, 2009, 108.13% to 109.38% if called on Jan. 30, 2010 and 109.75% to 111.25% if called on April 30, 2010.

The exact redemption amounts will be set at pricing.

If the notes are not called, payout at maturity will be par unless the index falls by more than 25% of the initial index level, in which case investors will lose 1% for each 1% decline beyond 25%.

The notes are expected to price on Oct. 27 and settle on Oct. 30.

HSBC Securities (USA) Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.