By Jennifer Chiou
New York, Dec. 30 - HSBC USA Inc. priced $6.88 million of 8% autocallable yield notes due Dec. 30, 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 either index closes at or above its initial level on March 28, June 27, Sept. 27, 2011 or Dec. 27, 2011.
A trigger event will occur if either index falls 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 least-performing index is positive, the payout will be par.
If a trigger event occurs and the return of the least-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: | $6.88 million
|
| Maturity: | Dec. 30, 2011
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If either index falls below trigger level during life of notes, par plus return of least-performing index, subject to maximum payout of par; otherwise, par
|
| Call: | Automatically at par if either index closes at or above its initial level on March 28, June 27, Sept. 27, 2011 or Dec. 27, 2011
|
| Initial index levels: | 1,257.54 for S&P 500 and 792.35 for Russell 2000
|
| Trigger levels: | 943.16 for S&P 500 and 593.26 for Russell 2000; 75% of initial levels
|
| Pricing date: | Dec. 27
|
| Settlement date: | Dec. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1BK8
|
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