By Toni Weeks
San Diego, May 24 - HSBC USA Inc. priced $1.96 million of 11.5% autocallable yield notes due May 28, 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, 75% of the initial level, on any trading day.
If a trigger event does not occur or if it does occur and the index return is zero or positive, investors will receive par at maturity.
If a trigger event occurs and the return of the least-performing index is negative, investors will share in those losses.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $1,955,000
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Maturity: | May 28, 2013
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Coupon: | 11.5%, payable quarterly
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Price: | Par
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Payout at maturity: | Par unless either index falls below the 75% trigger level during the life of the notes and the return of the worst-performing index is negative, in which case par plus return of worst-performing index
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Initial levels: | 1,316.63 for S&P 500 and 759.63 for Russell
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Trigger levels: | 75% of initial levels
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Call: | At par if both indexes are at or above their initial levels on any quarterly call observation date beginning Aug. 23
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Pricing date: | May 22
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Settlement date: | May 25
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.6%
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Cusip: | 4042K1H89
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