HSBC plans five-year autocallable yield notes tied to three indexes

By Marisa Wong

Madison, Wis., July 15 - HSBC USA Inc. plans to price autocallable yield notes due July 2018 linked to the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a coupon equal to Libor plus at least 500 basis points. Interest is payable quarterly. The exact rate will be set at pricing.

The notes will be called automatically at par plus accrued interest if the indexes close at or above their initial levels on any annual observation date beginning July 2014.

A trigger event will occur if any index falls below its trigger level, 60% of the initial level, on any trading day during the life of the notes.

If a trigger event does not occur or if it does occur but the return of the least performing index is zero or positive, investors will receive par at maturity. Otherwise, investors will share fully in the losses of the least performing index.

The notes (Cusip: 40432XJ28) are expected to price and settle in July.

HSBC Securities (USA) Inc. will be the agent.

© 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.