Published on 8/2/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $869,000 10% autocallable yield notes on Russell, metals fund
By Susanna Moon
Chicago, Aug. 2 - HSBC USA Inc. priced $869,000 of 10% autocallable yield notes due Aug. 6, 2013 linked to the Russell 2000 index and the SPDR S&P Metals & Mining ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if both the index and the fund close at or above their initial levels on any quarterly call observation date.
The payout at maturity will be par unless either index or fund closes below its 60% trigger level during the life of the notes and the return of the worst-performing component is negative, in which case investors will receive par plus the return of the worst-performing component.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying components: | Russell 2000 and SPDR S&P Metals & Mining ETF
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Amount: | $869,000
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Maturity: | Aug. 6, 2013
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Coupon: | 10%, payable quarterly
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Price: | Par
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Payout at maturity: | Par unless either index or fund closes below trigger level during life of notes and return of worst-performing component is negative, in which case par plus return of worst-performing component
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Call: | At par if index and fund close at or above their initial levels on Nov. 1, 2012, Feb. 1, 2013, May 1, 2013 or Aug. 1, 2013
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Initial levels: | 786.94 for Russell, $39.80 for metals fund
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Trigger level: | 60% of initial levels
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Pricing date: | July 31
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Settlement date: | Aug. 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.35%
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Cusip: | 4042K1Y64
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