Published on 4/27/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.89 million 12.5% callable yield notes on Russell, Gold Miners
By Marisa Wong
Madison, Wis., April 27 - HSBC USA Inc. priced $2.89 million of 12.5% callable yield notes due April 30, 2012 linked to the Russell 2000 index and the Market Vectors Gold Miners exchange-traded fund, 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 underlying component falls to or below its knock-in level - 65% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worse 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: | Callable yield notes
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Underlying components: | Russell 2000 index and Market Vectors Gold Miners ETF
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Amount: | $2,893,000
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Maturity: | April 30, 2012
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Coupon: | 12.5%, 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 worse 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: | 844.23 for Russell, $61.24 for Gold Miners
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Knock-in levels: | 548.75 for index, $39.81 for ETF; 65% of initial levels
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Pricing date: | April 25
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Settlement date: | April 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.6%
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Cusip: | 4042K1GJ6
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