By Toni Weeks
San Diego, June 26 - HSBC USA Inc. priced $2.78 million of 7% autocallable yield notes due June 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 if the closing level of each index is at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless either index falls below its trigger level - 70% of its initial level - during the life of the notes and the return of the worst-performing index is negative, in which case investors will receive par plus the return of the worst-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $2,783,000
|
| Maturity: | June 28, 2013
|
| Coupon: | 7%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any index falls below the 70% 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
|
| Initial levels: | 1,335.02 for S&P 500 and 775.16 for Russell
|
| Trigger levels: | 70% of initial levels
|
| Call: | At par if both indexes are at or above their initial levels on any quarterly call observation date beginning Sept. 25
|
| Pricing date: | June 22
|
| Settlement date: | June 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1R21
|
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