Published on 10/30/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $277,000 of 7.5% autocallable yield notes linked to S&P 500, Russell 2000
By Jennifer Chiou
New York, Oct. 30 – HSBC USA Inc. priced $277,000 of 7.5% autocallable yield notes due Jan. 29, 2016 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 monthly.
Beginning six months after issuance, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless either index closes below its trigger level, 75% of its initial level, on any day during the life of the notes and the return of the worst-performing index is negative, in which case investors will lose 1% for every 1% that the worst-performing index finishes below its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $277,000
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| Maturity: | Jan. 29, 2016
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| Coupon: | 7.5%, payable monthly
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| Price: | Par
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| Payout at maturity: | Par unless either index closes below 75% trigger level during life of notes and return of worst-performing index is negative, in which case 1% loss for every 1% that worst-performing index finishes below initial level
|
| Call: | Automatically at par if both indexes close at or above their initial levels on any quarterly call observation date beginning on April 29, 2015
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| Initial index levels: | 1,964.58 for S&P 500 and 1,118.824 for Russell 2000
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | Up to 0.75% for referral fees
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| Cusip: | 40433BQH4
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