Published on 3/30/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC priced $3.8 million 10.25% autocallable yield notes linked to index, two funds
By Marisa Wong
Madison, Wis., March 30 - HSBC USA Inc. plans to price 10.25% autocallable yield notes due April 3, 2013 linked to the Russell 2000 index, the iShares MSCI Brazil index fund and the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
The notes will be called at par if each underlying component closes at or above its initial level on any of four quarterly observation dates.
The payout at maturity will be par unless any component dips below the 60% trigger level during the life of the notes and finishes below the initial level, in which case investors will receive par plus the return of the worst-performing component.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying components: | Russell 2000 index, iShares MSCI Brazil index fund, Market Vectors Gold Miners exchange-traded fund
|
| Amount: | $3,796,000
|
| Maturity: | April 3, 2013
|
| Coupon: | 10.25%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par if index and both funds never dip below trigger level or if worst-performing component finishes at or above initial level; otherwise, exposure to losses of worst-performing component
|
| Call: | At par if underlying components each close at or above initial levels on June 28, 2012, Sept. 28, 2012, Dec. 28, 2012 or March 28, 2013
|
| Initial levels: | 832.22 for Russell, $64.88 for Brazil fund, $49.09 for Gold Miners ETF
|
| Trigger levels: | 499.33 for Russell, $38.93 for Brazil fund, $29.45 for Gold Miners ETF; 60% of initial levels
|
| Pricing date: | March 29
|
| Settlement date: | April 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1A52
|
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