Published on 7/26/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $630,000 9% autocallable yield notes linked to three funds
By Marisa Wong
Madison, Wis., July 26 - HSBC USA Inc. priced $630,000 of 9% autocallable yield notes due July 19, 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 will be called at par if each underlying component closes at or above its initial level on Oct. 17, Jan. 17, April 16, 2012 or July 16, 2012.
The payout at maturity will be par unless any fund closes below 70% of its initial level during the life of the notes. In that case, the payout will be par plus the return of the worst-performing component, subject to a maximum payout of par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying funds: | SPDR S&P Metals & Mining exchange-traded fund, Oil Service Holdrs Trust and Market Vectors Agribusiness ETF
|
| Amount: | $630,000
|
| Maturity: | July 19, 2012
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If any fund closes below 70% of initial level during life of notes, par plus return of worst-performing component, up to maximum payout of par; otherwise, par
|
| Call: | Automatically at par if each underlying component closes at or above its initial level on Oct. 17, Jan. 17, April 16, 2012 or July 16, 2012
|
| Initial prices: | $71.80 for metals ETF, $161.53 for oil trust, $55.67for agriculture ETF
|
| Trigger prices: | $50.26 for metals ETF, $113.07 for oil trust, $38.97 for agriculture ETF; 70% of initial prices
|
| Pricing date: | July 22
|
| Settlement date: | July 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.1%
|
| Cusip: | 4042K1KQ5
|
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