Published on 4/30/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $348,000 16% callable yield notes tied to Russell 2000, S&P 500
By Jennifer Chiou
New York, April 30 - HSBC USA Inc. priced $348,000 of 16% callable yield notes due April 30, 2010 linked to the Russell 2000 and S&P 500 indexes, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If either index falls to or below its knock-in level - 60% of its initial level - during the life of the notes, then the payout at maturity will be par plus the return of the worst-performing index, capped at a maximum payout of par. If each index remains above its knock-in level, the payout will be par.
The notes are callable at par on any interest payment date at HSBC's option.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable yield notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $348,000
|
| Maturity: | April 30, 2010
|
| Coupon: | 16%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If either index falls to or below its knock-in level during the life of the notes, par plus the return of the worst-performing index, capped at a maximum payout of par; otherwise, par
|
| Call option: | At par on any interest payment date
|
| Initial index levels: | 393.09 for Russell 2000 and 857.51 for S&P 500
|
| Knock-in levels: | 281.72 for Russell 2000 and 469.53 for S&P 500; 60% of initial levels
|
| Pricing date: | April 27
|
| Settlement date: | April 30
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
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