By Angela McDaniels
Tacoma, Wash., Nov. 23 - HSBC USA Inc. priced $5.39 million of 10% autocallable yield notes due Nov. 25, 2011 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if both indexes close at or above their initial levels on Feb. 22, May 19, Aug. 19, 2011 or Nov. 21, 2011.
A trigger event will occur if either index closes below 75% of its initial level on any trading day during the life of the notes.
If a trigger event does not occur, the payout at maturity will be par.
If a trigger event occurs and the return of the worst-performing index is positive, the payout will be par.
If a trigger event occurs and the return of the worst-performing index is negative, investors will share in the decline.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $5,389,000
|
| Maturity: | Nov. 25, 2011
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If either index falls below trigger level during life of notes, par plus return of worst-performing index, subject to maximum payout of par; otherwise, par
|
| Call: | Automatically at par if both indexes close at or above their initial levels on Feb. 22, May 19, Aug. 19, 2011 or Nov. 21, 2011
|
| Initial index levels: | 1,199.73 for S&P 500 and 724.36 for Russell 2000
|
| Trigger levels: | 899.80 for S&P 500 and 543.27 for Russell 2000; 75% of initial levels
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.6%
|
| Cusip: | 4042K07M1
|
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