New Issue: HSBC prices $6.91 million 8% autocallable yield notes tied to S&P 500, Russell 2000

By Marisa Wong

Madison, Wis., Jan. 26 - HSBC USA Inc. priced $6.91 million of 8% autocallable yield notes due Jan. 27, 2012 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 April 25, July 22, Oct. 24, 2011 or Jan. 24, 2012.

A trigger event will occur if either index falls below 80% of its initial level on any trading day during the life of the notes.

If a trigger event occurs and the return of the least-performing index is negative, investors will share in that decline. Otherwise, the payout will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$6,911,000
Maturity:	Jan. 27, 2012
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 April 25, July 22, Oct. 24, 2011 or Jan. 24, 2012
Initial index levels:	1,290.84 for S&P 500 and 779.28 for Russell 2000
Trigger levels:	1,032.67 for S&P 500 and 623.42 for Russell 2000; 80% of initial levels
Pricing date:	Jan. 24
Settlement date:	Jan. 27
Agent:	HSBC Securities (USA) Inc.
Fees:	2.6%
Cusip:	4042K1CD3

© 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.