HSBC plans to price autocallable yield notes linked to three indexes

By Toni Weeks

San Luis Obispo, Calif., Feb. 4 - HSBC USA Inc. plans to price autocallable yield notes due February 2019 linked to the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be Libor plus at least 500 basis points, with the exact rate to be set at pricing. Interest is payable quarterly and cannot be less than zero.

The notes will be called automatically at par plus accrued interest if the indexes close above their initial levels on any annual observation date beginning in February 2015.

A trigger event will occur if any index falls below the trigger level, 70% of the initial level, on any trading day.

If a trigger event does not occur or if it does occur and the index return of the least-performing underlying index is zero or positive, investors will receive par at maturity.

If a trigger event occurs and the return of the least-performing index is negative, investors will share in those losses.

The notes (Cusip: 40432XTU5) are expected to price and settle in February.

HSBC Securities (USA) Inc. will be the agent.

© 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.