By Angela McDaniels
Tacoma, Wash., July 22 - HSBC USA Inc. priced $3.9 million of autocallable yield notes due July 23, 2018 linked to the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is Libor plus 500 basis points. Interest is payable quarterly.
The notes will be called at par if each underlying index closes at or above its initial level on any annual call observation date.
A trigger event occurs if any underlying index closes below its trigger level, 60% of its initial level, during the life of the notes.
If the notes are not called, the payout at maturity will be par unless a trigger event has occurred and the return of the least-performing index is negative, in which case investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500, Euro Stoxx 50, Nikkei 225
|
| Amount: | $3.9 million
|
| Maturity: | July 23, 2018
|
| Coupon: | Libor plus 500 bps, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any index closes below trigger level during life of notes and return of least-performing index is negative, in which case full exposure to decline of least-performing index
|
| Call: | Automatically at par if all underlying indexes close at or above initial levels on any annual call observation date
|
| Initial index levels: | 1,689.37 for S&P 500; 2,717.99 for Euro Stoxx 50 ;14,808.50 for Nikkei
|
| Trigger levels: | 60% of initial levels
|
| Pricing date: | July 18
|
| Settlement date: | July 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40432XJ28
|
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