Published on 3/28/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $425,000 11.5% autocallable yield notes on Russell, MSCI EM
By Susanna Moon
Chicago, March 28 - HSBC USA Inc. priced $425,000 of 11.5% autocallable yield notes due March 22, 2012 linked to the Russell 2000 index and the iShares MSCI Emerging Markets index 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.
The payout at maturity will be par unless any component falls to or below its knock-in level - 80% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst performing component, up to a maximum payout of par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying components: | Russell 2000 index and the iShares MSCI Emerging Markets index fund
|
| Amount: | $425,000
|
| Maturity: | March 22, 2012
|
| Coupon: | 11.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If any component falls to or below its knock-in level during the life of the notes, par plus the return of the worst performing component, up to a maximum payout of par; otherwise, par
|
| Call option: | At par on any interest payment date
|
| Initial levels: | 817.10 for Russell, $47.39 for EM
|
| Knock-in levels: | 653.68 for Russell, $37.91 for EM; 80% of initial levels
|
| Pricing date: | March 24
|
| Settlement date: | March 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.6%
|
| Cusip: | 4042K1EZ2
|
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