By Susanna Moon
Chicago, Jan. 26 - HSBC USA Inc. priced $570,000 of 14% callable yield notes due Jan. 27, 2011 based on the performance of the Market Vector Gold Miners trust and Energy Select SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes are callable at par on any interest payment date.
If the notes are not called, the payout at maturity will be par unless either underlying fund falls to or below its knock-in level - 70% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst-performing fund, up to a maximum payout of par.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable yield notes
|
| Underlying funds: | Market Vector Gold Miners trust and Energy Select SPDR fund
|
| Amount: | $570,000
|
| Maturity: | Jan. 27, 2011
|
| Coupon: | 14%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If either fund falls to or below its knock-in level during the life of the notes, par plus the return of the worst-performing fund, capped at par; otherwise, par
|
| Call option: | At par on interest payment dates
|
| Initial levels: | $43.97 for Gold Trust and $56.28 for Energy Select
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 4042K0K79
|
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