By Susanna Moon
Chicago, Feb. 14 - HSBC USA Inc. priced $1.31 million of 9.1% autocallable yield notes due Feb. 14, 2013 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called automatically at par plus accrued interest if the indexes close above their initial levels on any quarterly observation date.
A trigger event will occur if any underlying component falls below the 62.5% trigger level on any trading day during the life of the notes.
If a trigger event does not occur, investors will receive par at maturity.
If a trigger event occurs and the return of the worst-performing index or fund is at least zero, investors will receive par. Otherwise, investors will be exposed to any losses of the worst-performing component.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying components: S&P 500 index, the Russell 2000 index and the iShares MSCI Brazil index fund
|
| Amount: | $1,313,000
|
| Maturity: | Feb. 14, 2013
|
| Coupon: | 9.1%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par if indexes or fund never dips below trigger or if worst-performing component finishes at or above initial level; otherwise, exposure to losses of worst-performer
|
| Call: | At par if underlying components each close at or above initial levels on quarterly observation date
|
| Initial levels: | 1,342.64 for S&P, 813.33 for Russell and $67.37 for Brazil fund
|
| Trigger levels: | 839.15 for S&P, 508.33 for Russell and $42.11 for Brazil fund; 62.6% of initial levels
|
| Pricing date: | Feb. 10
|
| Settlement date: | Feb. 15
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1XH1
|
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