By Susanna Moon
Chicago, Sept. 27 - HSBC USA Inc. priced $3.11 million of autocallable yield notes due Sept. 28, 2011 linked to the S&P 500 and Russell 2000 indexes, according to an FWP filing with the Securities and Exchange Commission.
The coupon will be 10%, payable quarterly.
The notes will be called at par plus accrued interest if the indexes close above their initial levels on any quarterly observation date.
A trigger event will occur if either index falls below the trigger level, 75% of the initial level, on any trading day.
If a trigger event does not occur or, if a trigger event occurs but the index gains, the payout at maturity will be par.
If a trigger event occurs and the return of the least-performing index is negative, investors will share in those losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $3,113,000
|
| Maturity: | Sept. 28, 2011
|
| Coupon: | 10%
|
| Price: | Par
|
| Call: | At par plus accrued interest if indexes close above initial level on any quarterly observation date
|
| Payout at maturity: | If either index ever dips below trigger level and finishes below initial level, investors will share in losses of worse performing index; otherwise, par
|
| Initial index level: | 1,124.83 for S&P, 648.84 for Russell
|
| Trigger level: | 843.62 for S&P, 486.63 for Russell; or 75% of initial level
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.6%
|
| Cusip: | 4042K04Z5
|
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