HSBC reveals discount for autocallable yield notes linked to indexes

By Angela McDaniels

Tacoma, Wash., June 17 - HSBC USA Inc. may pay varying underwriting discounts of up to 1.5% for its autocallable yield notes due June 14, 2018 linked to the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B3 filing with the Securities and Exchange Commission.

Previously, the underwriting discount was listed as zero.

As previously reported, the company priced $2 million of the notes at par on June 11.

The interest rate is Libor plus 475 basis points. Interest is payable quarterly.

The notes will be called at par if each underlying index closes at or above its initial level on June 11, 2014, June 10, 2015, June 9, 2016, June 9, 2017 or June 11, 2018.

A trigger event occurs if any underlying index closes below its trigger level, 50% of its initial level, during the life of the notes.

If the notes are not called, the payout at maturity will be par unless a trigger event has occurred and the return of the least-performing index is negative, in which case investors will be fully exposed to the decline of the least-performing index.

HSBC Securities (USA) Inc. is the agent.

The Cusip number is 40432XGA3.

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