By Marisa Wong
Madison, Wis., May 29 – HSBC USA Inc. priced $666,000 of 6.5% autocallable yield notes due Aug. 29, 2016 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Beginning in November, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless either index closes below its trigger level, 75% of its initial level, on any day during the life of the notes and the final 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.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $666,000
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| Maturity: | Aug. 29, 2016
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| Coupon: | 6.5%; payable monthly
|
| Price: | Par
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| Payout at maturity: | Par unless either index closes below trigger level during the life of the notes and final return of least-performing index is negative, 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 quarterly call observation date beginning in November
|
| Initial index levels: | 2,104.20 for S&P and 1,238.756 for Russell
|
| Trigger levels: | 75% of initial levels
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| Pricing date: | May 26
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| Settlement date: | May 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40433BQ76
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