Published on 5/17/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.39 million 7.5% autocallable yield notes on S&P 500, Russell 2000
By Marisa Wong
Madison, Wis., May 17 - HSBC USA Inc. priced $3.39 million of 7.5% autocallable yield notes due May 10, 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 Aug. 8, Nov. 7, Feb. 6, 2012 or May 7, 2012.
The payout at maturity will be par unless either index falls below its trigger level - 80% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst-performing index, 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 indexes: | S&P 500 and Russell 2000
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Amount: | $3,338,000
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Maturity: | May 10, 2012
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Coupon: | 7.5%, payable quarterly
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Price: | Par
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Payout at maturity: | If either index falls below its trigger level during the life of the notes, par plus the return of the worst-performing index, capped at par; otherwise, par
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Call: | At par if both indexes close at or above their initial levels on Aug. 8, Nov. 7, Feb. 6, 2012 or May 7, 2012
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Initial index levels: | 1,337.77 for S&P 500 and 835.67 for Russell 2000
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Trigger levels: | 1,070.22 for S&P 500 and 668.54 for Russell 2000; 80% of initial levels
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Pricing date: | May 13
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Settlement date: | May 18
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.1%
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Cusip: | 4042K1GN7
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