Published on 1/9/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $800,000 autocallable yield notes tied to three indexes
By Marisa Wong
Madison, Wis., Jan. 9 - HSBC USA Inc. priced $800,000 of autocallable yield notes due Jan. 10, 2019 linked to the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes carry a coupon of Libor plus a spread of 450 basis points. Interest is payable quarterly.
The notes will be called at par if each index closes at or above its initial level on any quarterly call observation date beginning Jan. 10, 2015.
A trigger event occurs if any index closes below its 60% trigger level on any day during the life of the notes.
The payout at maturity will be par unless a trigger event occurs and the final return of the least 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 index, Euro Stoxx 50 index and Nikkei 225 index
|
| Amount: | $800,000
|
| Maturity: | Jan. 10, 2019
|
| Coupon: | Libor plus 450 bps, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any index closes below its 60% trigger level on any day during life of notes and final return of least performing index is negative, in which case par plus return of worst performing index
|
| Call: | A par if each index closes at or above its initial level on any quarterly call observation date beginning Jan. 10, 2015
|
| Initial levels: | 1,837.88 for S&P 500, 3,110.96 for Euro Stoxx 50, 15,814.37 for Nikkei 225
|
| Pricing date: | Jan. 7
|
| Settlement date: | Jan. 10
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40432XQX2
|
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