New Issue: HSBC prices $2 million 10.2% autocallable yield notes linked to S&P 500, Russell 2000

By Susanna Moon

Chicago, Nov. 14 - HSBC USA Inc. priced $2 million of 10.2% autocallable yield notes due Nov. 15, 2012 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 called at par if each index closes at or above its initial level on any of four quarterly observation dates.

The payout at maturity will be par unless either index finishes below 60% of its initial level, in which case investors will receive par plus the return of the worst-performing index.

HSBC Securities (USA) Inc. is the agent with J.P. Morgan Securities LLC as dealer.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$2 million
Maturity:	Nov. 15, 2012
Coupon:	10.2%, payable quarterly
Price:	Par
Payout at maturity:	If either index finishes below trigger level, par plus the return of the worst-performing index; otherwise, par
Call:	At par if both indexes close at or above their initial levels on Feb. 9, 2012, May 9, 2012, Aug. 9, 2012 or Nov. 9, 2012
Initial index levels:	1,242.22 for S&P 500 and 730.88 for Russell 2000
Trigger levels:	745.33 for S&P 500 and 438.53 for Russell 2000; 60% of initial levels
Pricing date:	Nov. 9
Settlement date:	Nov. 15
Agent:	HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as dealer
Fees:	1%
Cusip:	4042K1SQ7

© 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.