By Toni Weeks
San Luis Obispo, Calif., March 10 – HSBC USA Inc. priced $500,000 of autocallable yield notes due March 11, 2020 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay interest at a floating rate equal to Libor plus 250 basis points, subject to a floor of 0%. Interest is payable quarterly.
Beginning March 8, 2016, the notes will be called at par if each index closes at or above its initial level on any annual call observation date.
The payout at maturity will be par unless either index finishes below its trigger level, 50% of its initial level, in which case investors will lose 1% for every 1% that the worst-performing index finishes below its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $500,000
|
| Maturity: | March 11, 2020
|
| Coupon: | Libor plus 250 bps, with floor of 0%; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below 50% trigger level, in which case 1% loss for every 1% that worst-performing index finishes below initial level
|
| Call: | Automatically at par if both indexes close at or above their initial levels on any annual call observation date beginning March 8, 2016
|
| Initial index levels: | 2,071.26 for S&P 500 and 1,217.515 for Russell 2000
|
| Pricing date: | March 6
|
| Settlement date: | March 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40433BB56
|
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