Published on 6/12/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2 million floating autocallable yield notes on S&P 500, Euro Stoxx, Nikkei
By Jennifer Chiou
New York, June 12 - HSBC USA Inc. priced $2 million of autocallable yield notes due June 14, 2018 linked to the S&P 500 index, Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be equal to Libor plus a spread of 475 basis points and will be payable quarterly.
The notes will be called at par if each underlying index closes at or above its initial level on any quarterly call observation date after one year.
A trigger event occurs if any underlying index closes below the 50% trigger level during the life of the notes.
If the notes are not called, the payout at maturity will be par unless a trigger event has occurred and the return of the least-performing index is negative, in which case investors will be fully exposed to any losses of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500, Euro Stoxx 50, Nikkei 225
|
| Amount: | $2 million
|
| Maturity: | June 14, 2018
|
| Coupon: | Libor plus 475 bps, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless a trigger event has occurred and the return of the least-performing index is negative, in which case par plus return of worse-performing index
|
| Call: | At par if each underlying index closes at or above their initial levels on any quarterly call observation date beginning on June 16, 2014
|
| Initial index levels: | 1,626.13 for S&P, 2,683.20 for Euro Stoxx and 13,317.62 for Nikkei
|
| Trigger levels: | 50% of initial levels
|
| Pricing date: | June 11
|
| Settlement date: | June 14
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40432XGA3
|
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