By Toni Weeks
San Luis Obispo, Calif., Feb. 18 - HSBC USA Inc. priced $1.8 million of autocallable yield notes due Feb. 20, 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 coupon will be Libor plus 500 basis points. Interest is payable quarterly and cannot be less than zero.
The notes will be called automatically at par plus accrued interest if the indexes close above their initial levels on any annual observation date beginning Feb. 20, 2015.
A trigger event will occur if any index falls below the trigger level, 70% of the initial level, on any trading day.
If a trigger event does not occur or if it does occur and the index return of the least-performing underlying index 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.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500, Euro Stoxx 50 and Nikkei 225
|
| Amount: | $1.8 million
|
| Maturity: | Feb. 20, 2019
|
| Coupon: | Libor plus 500 bps, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any index falls below trigger level during life of notes and return of worst-performing index is negative, in which case par plus return of worst-performing index
|
| Call: | At par if all indexes close at or above their initial levels on any annual call observation date beginning Feb. 20, 2015
|
| Initial index levels: | 1,863.63 for S&P 500, 3,119.06 for Euro Stoxx 50 and 14,313.03 for Nikkei 225
|
| Trigger levels: | 70% of initial levels
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| Pricing date: | Feb. 14
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| Settlement date: | Feb. 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40432XTU5
|
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