Published on 3/14/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.84 million 9.5% callable yield notes linked to fund, two indexes
By Toni Weeks
San Diego, March 14 - HSBC USA Inc. priced $1.8 million of 9.5% callable yield notes due March 15, 2013 linked to the S&P MidCap 400 index, the Russell 2000 index and the iShares FTSE/Xinhua China 25 index fund, 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 after six months.
The payout at maturity will be par unless any component falls below the 62.5% trigger level on any day during the life of the notes and the final return of the least-performing component is zero or negative, in which case investors will receive par plus the return of the least-performing component.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable yield notes
|
| Underlying components: | S&P MidCap 400 index, Russell 2000 index and iShares FTSE/Xinhua China 25 index fund
|
| Amount: | $1,836,000
|
| Maturity: | March 15, 2013
|
| Coupon: | 9.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any component falls below the 62.5% trigger level on any trading day and the return of the least-performing component is zero or negative, in which case par plus return of least-performing component
|
| Initial levels: | 980.71 for S&P MidCap, 814.29 for Russell, $38.81 for FTSE China
|
| Trigger levels: | 612.94 for S&P MidCap, 508.93 for Russell, $24.26 for FTSE China fund; 62.5% of initial levels
|
| Call option: | At par on any quarterly interest payment date beginning Sept. 17.
|
| Pricing date: | March 12
|
| Settlement date: | March 15
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1ZN6
|
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