By Angela McDaniels
Tacoma, Wash., Oct. 26 - HSBC USA Inc. priced $1.83 million of 8% autocallable yield notes due Oct. 27, 2011 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if both indexes close at or above their initial levels on Jan. 24, April 25, July 22, 2011 or Oct. 24, 2011.
A trigger event will occur if either index falls below 75% of its initial level on any trading day during the life of the notes.
If a trigger event does not occur, the payout at maturity will be par.
If a trigger event occurs and the return of the least-performing index is positive, the payout will be par.
If a trigger event occurs and the return of the least-performing index is negative, investors will share in the decline.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $1,831,000
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Maturity: | Oct. 27, 2011
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Coupon: | 8%, payable quarterly
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Price: | Par
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Payout at maturity: | If either index falls below trigger level during life of notes, par plus return of least-performing index, subject to maximum payout of par; otherwise, par
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Call: | Automatically at par if both indexes close at or above their initial levels on Jan. 24, April 25, July 22, 2011 or Oct. 24, 2011
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Initial index levels: | 1,183.08 for S&P 500 and 703.43 for Russell 2000
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Trigger levels: | 887.31 for S&P 500 and 527.5 for Russell 2000; 75% of initial levels
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Pricing date: | Oct. 22
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Settlement date: | Oct. 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.6%
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Cusip: | 4042K06A8
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