New Issue: HSBC prices $1.31 million autocallable notes linked to Russell 2000

By Marisa Wong

Madison, Wis., May 29 - HSBC USA Inc. priced $1.31 million of 0% autocallable notes due May 30, 2014 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus an annualized call premium of 6% if the index closes at or above the initial index level on any of four semiannual observation dates.

If the notes are not called and the final index level is at least 70% of the initial index level, the payout at maturity will be par. Otherwise, investors will lose 1.4286% for every 1% decline beyond the 30% buffer.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable notes
Underlying index:	Russell 2000
Amount:	$1,307,000
Maturity:	May 30, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If final index level is at least 70% of initial index level, par; otherwise, 1.4286% loss per 1% drop beyond 30%
Call:	Automatically at par plus 6% per year if index closes at or above initial index level on Nov. 26, May 24, 2013, Nov. 25, 2013 or May 27, 2014
Initial index level:	766.57
Pricing date:	May 24
Settlement date:	May 30
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.8%
Cusip:	4042K1L68

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.