Published on 2/23/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.96 million 10% autocallable yield notes on Gold Miners, SPDR Metals funds
By Susanna Moon
Chicago, Feb. 23 - HSBC USA Inc. priced $1.96 million of 10% autocallable yield notes due Feb. 24, 2012 based on the Market Vectors Gold Miners exchange-traded fund and the SPDR S&P Metals & Mining ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes are callable at par on any interest payment date.
The payout at maturity will be par unless either component falls to or below its knock-in level - 70% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst-performing component, up to a maximum payout of par.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying components: | Market Vectors Gold Miners ETF and SPDR S&P Metals & Mining ETF
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Amount: | $1,961,000
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Maturity: | Feb. 24, 2012
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Coupon: | 10%, payable quarterly
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Price: | Par
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Payout at maturity: | If either component falls to or below its knock-in level during the life of the notes, par plus the return of the worst-performing component, up to a maximum payout of par; otherwise, par
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Call option: | At par on any interest payment date
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Initial levels: | $58.98 for gold fund; $72.91 for metals fund
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Knock-in levels: | $41.29 for gold fund; $51.04 for metals fund; 70% of initial levels
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Pricing date: | Feb. 18
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Settlement date: | Feb. 24
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.1%
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Cusip: | 4042K1CX9
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