By Jennifer Chiou
New York, Dec. 27 - HSBC USA Inc. priced a $10.5 million issue of 0% performance securities with contingent protection due Dec. 31, 2012 linked to a basket of indexes via UBS Financial Services Inc. and HSBC USA Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Dow Jones Euro Stoxx 50 index with a 35% weight, the FTSE 100 index with a 25% weight, the Nikkei 225 index with a 25% weight, the Swiss Market index with a 5% weight, the S&P/ASX 200 index with a 5% weight and the MSCI Emerging Markets index with a 5% weight.
The payout at maturity will be par of $10 plus 128% of any basket gain.
If final basket level is less than the initial level, the payout will be:
• Par minus the index decline if the basket closes below the trigger level - 50% of the initial level - at any point during the life of the securities; or
• Par if the basket never closes below the trigger level.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities with contingent protection
|
| Underlying indexes: | Dow Jones Euro Stoxx 50 (35% weight), FTSE 100 (25% weight), Nikkei 225 (25% weight), Swiss Market (5% weight), S&P/ASX 200 (5% weight), MSCI Emerging Markets (5% weight)
|
| Amount: | $10,502,520
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 128% of any basket gain; par if basket never closes below the trigger level; par minus the index decline if the basket closes below the trigger level
|
| Trigger level: | 50% of the initial basket level
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 31
|
| Underwriters: | UBS Financial Services Inc., HSBC USA Inc.
|
| Fees: | 3.5%
|
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