By E. Janene Geiss
Philadelphia, Jan. 11 - HSBC USA Inc. priced a $10,656,000 issue of 0% equity buffer notes due Jan. 28, 2009 linked to an index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the MSCI EAFE index with a 65% weight and the S&P 500 index with a 35% weight.
The payout at maturity will be par plus triple any index gain, subject to a maximum return of 15.7%.
Investors will receive par if the index declines by 10% or less and will lose 1.11% for each 1% index decline beyond 10%.
The initial basket level will be determined by taking an average of each indexes' closing levels on five pricing dates - Jan. 9, Jan. 10, Jan. 11, Jan. 14 and Jan. 15.
The final basket level will be determined by taking an average of each indexes' closing levels on five observation dates - Jan. 16, Jan. 20. Jan. 21, Jan. 22 and Jan. 23 of 2009.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Equity buffer notes
|
| Underlying basket: | MSCI EAFE index (65% weight) and S&P 500 index (35% weight)
|
| Amount: | $10,656,000
|
| Maturity: | Jan. 28, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus triple any index gain, capped at 15.7% maximum return; par if index falls by 10% or less; 1.11% loss for each 1% decline beyond 10%
|
| Initial basket level: | Average of each indexes' closing levels on Jan. 9, Jan. 10, Jan. 11, Jan. 14 and Jan. 15
|
| Final basket level: | Average of each indexes' closing levels on Jan. 16, Jan. 20, Jan. 21, Jan. 22 and Jan. 23 of 2009
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 16
|
| Agent: | HSBC Securities (USA) Inc.
|
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