By Susanna Moon
Chicago, May 24 - HSBC USA Inc. priced $2.47 million of 8.5% 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 at par plus accrued interest if the indexes close above their initial levels on any quarterly call date.
A trigger event will occur if either index falls below the 75% trigger level on any trading day.
If a trigger event does not occur or, if it does occur and the least performing index finishes at or above the initial level, the payout at maturity will be par.
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.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $2,473,000
|
| Maturity: | May 28, 2013
|
| Coupon: | 8.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless either index ever dips below the trigger level and the return of the worst-performing index is negative, in which case par plus return of worst-performing index
|
| Initial levels: | 1,316.63 for S&P 500 and 759.63 for Russell
|
| Trigger levels: | 75% of initial levels
|
| Call: | At par if both indexes are at or above their initial levels on any quarterly call date
|
| Pricing date: | May 22
|
| Settlement date: | May 25
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1H97
|
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