By Marisa Wong
Morgantown, W.Va., Nov. 2 – HSBC USA Inc. priced $1.7 million of 6.5% autocallable yield notes due April 30, 2018 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.
After one year, 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 worse performing index is negative, in which case investors will lose 1% for every 1% that the worse performing index finishes below its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1,696,000
|
| Maturity: | April 30, 2018
|
| Coupon: | 6.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below trigger level during life of notes and return of worse performing index is negative, in which case 1% loss for each 1% decline of worse performing index
|
| Call: | At par if each index closes at or above the initial level on any quarterly observation date after one year
|
| Initial levels: | 2,139.43 for S&P and 1,204.749 for Russell
|
| Trigger levels: | 75% of initial levels
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40433UWV4
|
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