Published on 4/24/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $34.09 million 8.1% callable yield notes linked to fund, two indexes
By Toni Weeks
San Diego, April 24 - HSBC USA Inc. priced $34.09 million of 8.1% callable yield notes due Oct. 23, 2014 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE 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 below its trigger level - 55% of its initial level - on the Oct. 20, 2014 final valuation date, in which case investors will receive par plus the return of the worst-performing component.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable yield notes
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Underlying components: | S&P 500 index, Russell 2000 index and iShares MSCI EAFE index fund
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Amount: | $34.09 million
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Maturity: | Oct. 23, 2014
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Coupon: | 8.1%, payable quarterly
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Price: | Par
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Payout at maturity: | Par unless any component falls below the 55% trigger level on Oct. 20, 2014, in which case par plus return of least-performing index
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Initial levels: | 1,378.53 for S&P 500, 804.05 for Russell and $53.43 for MSCI EAFE
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Trigger levels: | 55% of initial levels
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Call option: | At par on any quarterly interest payment date beginning July 23
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Pricing date: | April 20
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Settlement date: | April 25
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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Cusip: | 4042K1G56
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