HSBC plans variable-coupon callable yield notes linked to Russell, S&P

By Angela McDaniels

Tacoma, Wash., Nov. 17 - HSBC USA Inc. plans to price variable-coupon callable yield notes due Nov. 28, 2012 linked to the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable quarterly. A coupon step-down event will occur if either index closes below its trigger level, 50% of its initial level, on the observation date for that quarter. The interest rate will be 13.4% per year if a coupon step-down event does not occur and 1% per year if a coupon step-down event does occur.

The payout at maturity will be par unless either index closes below its trigger level during the life of the notes, in which case the payout will be par plus the return of the worst-performing index, subject to a maximum payout of par.

The notes are callable at par on any interest payment date.

The notes (Cusip: 4042K1SU8) will price Nov. 22 and settle Nov. 28.

HSBC Securities (USA) Inc. is the underwriter.

© 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.