By Marisa Wong
Madison, Wis., Jan. 26 - HSBC USA Inc. priced $6.8 million of 9.5% autocallable yield notes due Jan. 23, 2013 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called automatically at par plus accrued interest if the indexes close above their initial levels on any quarterly observation date.
A trigger event will occur if either index falls below the trigger level, 70% of the initial level, on any trading day.
If a trigger event does not occur, investors will receive par at maturity. If a trigger event occurs but the return of the least-performing index is positive, investors will also receive par. Otherwise, investors will receive par plus the return of the least-performing index and will share fully in losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $6,803,000
|
| Maturity: | Jan. 23, 2013
|
| Coupon: | 9.5% per year, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par, unless a trigger event occurs and the return of the least-performing index is zero or negative, in which case investors will share fully in those losses
|
| Call: | At par if both underlying indexes close at or above initial levels on any quarterly observation date
|
| Initial levels: | 1,314.65 for S&P, 788.27 for Russell
|
| Trigger levels: | 920.26 for S&P, 551.79 for Russell; 70% of initial levels
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1UT8
|
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