By Angela McDaniels
Tacoma, Wash., Aug. 26 - HSBC USA Inc. priced $147,000 of 0% autocallable notes due Aug. 30, 2011 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus an annualized call premium of 12% if the index closes at or above the initial index level on Nov. 26, Feb. 25, May 25, 2011 or Aug. 25, 2011.
A trigger event will occur if the index closes below 75% of its initial level on any day during the life of the notes.
If the notes are not called and a trigger event does not occur, the payout at maturity will be par.
If a trigger event occurs and the final index level is greater than or equal to the buffer - 90% of the initial level - the payout at maturity will be par.
If a trigger event occurs and the final index level is less than the buffer level, investors will lose 1% for every 1% decline below the buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying index: | Russell 2000
|
| Amount: | $147,000
|
| Maturity: | Aug. 30, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index does not close below trigger level during life of notes, par; otherwise, par if final index level has not declined from initial index level by more than 10% or 1% loss for every 1% it declines beyond 10%
|
| Call: | Automatically at par plus annualized call premium of 12% if index closes at or above initial level on Nov. 26, Feb. 25, May 25, 2011 or Aug. 25, 2011
|
| Initial index level: | 604.87
|
| Trigger level: | 453.65, 75% of initial level
|
| Pricing date: | Aug. 25
|
| Settlement date: | Aug. 30
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 4042K04R3
|
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