Published on 4/27/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.02 million 9% autocallable yield notes linked to three funds
By Angela McDaniels
Tacoma, Wash., April 27 - HSBC USA Inc. priced $2.02 million of 9% autocallable yield notes due April 23, 2012 linked to the SPDR S&P Metals & Mining exchange-traded fund, the Oil Service Holdrs Trust and the Market Vectors Agribusiness ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if each underlying component closes at or above its initial level on July 18, Oct. 18, Jan. 18, 2012 or April 18, 2012.
The payout at maturity will be par unless any fund closes below 70% of its initial level during the life of the notes. In that case, the payout will be par plus the return of the worst-performing component, subject 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 funds: | SPDR S&P Metals & Mining exchange-traded fund, Oil Service Holdrs Trust and Market Vectors Agribusiness ETF
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Amount: | $2,021,000
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Maturity: | April 23, 2012
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Coupon: | 9%, payable quarterly
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Price: | Par
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Payout at maturity: | If any fund closes below 70% of initial level during life of notes, par plus return of worst-performing component, up to maximum payout of par; otherwise, par
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Call: | Automatically at par if each underlying component closes at or above its initial level on July 18, Oct. 18, Jan. 18, 2012 or April 18, 2012
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Initial levels: | $51.60 for metals ETF; $112.27 for oil trust; $39.21 for agriculture ETF
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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: | 2.1%
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Cusip: | 4042K1FP3
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