By Jennifer Chiou
New York, Nov. 14 - HSBC USA Inc. priced a $5.16 million issue of 0% performance securities with contingent protection due Nov. 14, 2012 linked to a basket of indexes via UBS Financial Services Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 with a 35% weight, the Dow Jones Euro Stoxx 50 with a 15% weight, the Nikkei 225 with a 15% weight, the Nasdaq 100 with a 10% weight, the FTSE 100 with a 10% weight, the MSCI Emerging Markets with a 5% weight, the Hang Seng China Enterprises with a 5% weight and the Kospi 200 with a 5% weight.
If the basket performance is positive, investors will receive par plus the return on the basket times a participation rate of 115%.
If the basket return is negative and the basket level never closes below the 50% trigger level, investors will receive par.
If the basket return is negative and the level does close below the trigger level during the life of the securities, investors will share in the basket decline.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities with contingent protection
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| Underlying indexes: | S&P 500 (35% weight), Dow Jones Euro Stoxx 50 (15% weight), Nikkei 225 (15% weight), Nasdaq 100 (10% weight), FTSE 100 (10% weight), MSCI Emerging Markets (5% weight), Hang Seng China Enterprises (5% weight), Kospi 200 (5% weight)
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| Amount: | $5,161,000
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| Maturity: | Nov. 14, 2012
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus 115% of any basket gain; par if the basket return is negative and the basket level never closes below the 50% trigger level; if the basket return is negative and the level does close below the trigger level during the life of the securities, investors will share in the basket decline
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| Pricing date: | Nov. 9
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| Settlement date: | Nov. 14
|
| Underwriter: | UBS Financial Services Inc.
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| Fees: | 3.5%
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