Published on 3/28/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.38 million 10% autocallable yield notes on fund basket
By Jennifer Chiou
New York, March 28 - HSBC USA Inc. priced $1.38 million of 10% autocallable yield notes due March 22, 2012 linked to the SPDR S&P Metals & Mining exchange-traded fund, the Oil Service HOLDRs Trust and the Market Vectors Agribusiness ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes are callable at par on any interest payment date.
The payout at maturity will be par unless any component falls to or below its knock-in level - 70% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst-performing component, up to a maximum payout of par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying components: | SPDR S&P Metals & Mining ETF, Oil Service HOLDRs Trust and Market Vectors Agribusiness ETF
|
| Amount: | $1,383,000
|
| Maturity: | March 22, 2012
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If any component falls to or below its knock-in level during the life of the notes, par plus the return of the worst-performing component, up to a maximum payout of par; otherwise, par
|
| Call option: | At par on any interest payment date
|
| Initial levels: | $72.98 for SPDR S&P Metals & Mining, $159.98 for Oil Service HOLDRs Trust and $54.86 for Market Vectors Agribusiness
|
| Knock-in levels: | $51.09 for SPDR S&P Metals & Mining, $111.99 for Oil Service HOLDRs Trust and $38.40 for Market Vectors Agribusiness; 70% of initial levels
|
| Pricing date: | March 24
|
| Settlement date: | March 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.1%
|
| Cusip: | 4042K1FA6
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
