By Angela McDaniels
Tacoma, Wash., March 29 - HSBC USA Inc. priced $5.16 million of 7% autocallable yield notes due April 3, 2013 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 called automatically at par if both indexes close at or above their initial levels on June 28, 2012, Sept. 28, 2012, Dec. 28, 2012 or March 28, 2013.
A trigger event will occur if either index falls below its trigger level, 70% of the initial level, on any trading day.
If a trigger event does not occur, the payout at maturity will be par.
If a trigger event occurs and the final return of the worst-performing index is positive, the payout will be par.
If a trigger event occurs and the final return of the worst-performing index is negative or zero, investors will be fully exposed to the decline of that index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $5,158,000
|
| Maturity: | April 3, 2013
|
| Coupon: | 7%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If trigger event does not occur, par; if trigger event occurs and final return of worst-performing index is positive, par; if trigger event occurs and final return of worst-performing index is negative or zero, full exposure to decline of that index
|
| Trigger event: | Either index closes trigger level on any trading day
|
| Call: | Automatically at par if both indexes close at or above their initial levels on June 28, 2012, Sept. 28, 2012, Dec. 28, 2012 or March 28, 2013
|
| Initial index levels: | 1,412.52 for S&P 500 and 839.98 for Russell 2000
|
| Trigger levels: | 70% of initial levels
|
| Pricing date: | March 27
|
| Settlement date: | March 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1ZG1
|
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