HSBC plans 6.5%-9.5% autocallable yield notes on S&P 500, Russell 2000

By Susanna Moon

Chicago, May 19 - HSBC USA Inc. plans to price autocallable yield notes due June 13, 2012 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be between 6.5% and 9.5%, payable quarterly. The exact coupon will be set at pricing.

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 either index falls to or below the trigger level, 80% of the initial level, on any trading day.

If a trigger event does not occur, the payout at maturity is par. If a trigger event occurs and the least-performing index return is positive, investors will also receive par.

If a trigger event occurs and the return of the least-performing index is negative, investors will share in those losses.

HSBC Securities (USA) Inc. is the agent.

The notes will price on June 15 and settle on June 20.

The Cusip is 4042K1HS5.

© 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.