Published on 6/17/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $802,000 7% autocallable yield notes linked to S&P 500, Russell 2000
By Angela McDaniels
Tacoma, Wash., June 17 - HSBC USA Inc. priced $802,000 of 7% autocallable yield notes due June 13, 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 Sept. 8, Dec. 8, March 8, 2012 or June 8, 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: | $802,000
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Maturity: | June 13, 2012
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Coupon: | 7%, 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: | Automatically at par if both indexes close at or above their initial levels on Sept. 8, Dec. 8, March 8, 2012 or June 8, 2012
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Initial index levels: | 1,265.42 for S&P 500 and 779.46 for Russell 2000
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Trigger levels: | 1,012.34 for S&P 500 and 623.57 for Russell 2000; 80% of initial levels
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Pricing date: | June 15
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Settlement date: | June 20
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.1%
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Cusip: | 4042K1HS5
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