By Toni Weeks
San Diego, Oct. 24 - HSBC USA Inc. priced $5 million of 7% autocallable notes due April 25, 2014 linked to the common stock of General Electric Co., the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called automatically at par if the underlying components close above their initial levels on any quarterly observation date.
A trigger event occurs if the final value of any underlying component drops by more than 35% of its initial value on the April 22, 2014 final valuation date.
If the notes are not called, the payout at maturity will be par if a trigger event has not occurred. If a trigger event has occurred, the payout at maturity will be par plus the return of the least-performing underlying component.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying components: | Common stock of General Electric Co. (NYSE: GE), Russell 2000 index and S&P 500 index
|
| Amount: | $5 million
|
| Maturity: | April 25, 2014
|
| Coupon: | 7%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any underlying component falls below trigger on April 22, 2014, in which case par plus return of least-performing underlying component
|
| Call: | At par if underlying components close at or above initial level on any quarterly call observation date
|
| Initial levels: | $21.36 for General Electric, 819.30 for Russell, 1,427.00 for S&P 500
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| Trigger level: | 65% of initial levels
|
| Pricing date: | Oct. 22
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| Settlement date: | Oct. 25
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
|
| Fees: | 1%
|
| Cusip: | 4042K17F4
|
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