By Jennifer Chiou
New York, Dec. 17 - HSBC USA Inc. priced $19.72 million of barrier optimization securities with partial protection due Dec. 23, 2009 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes above the index barrier - 145.33% of the initial level - on any day during the life of the notes, the payout at maturity will be par of $10 plus a 4% conditional coupon.
Otherwise, the payout will be:
• Par plus the index return if the final index level is greater than the initial level;
• Par if the index declines by 25% or less; or
• Par minus 1% for every 1% that the index declines beyond 25%.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier optimization securities with partial protection
|
| Underlying index: | S&P 500
|
| Amount: | $19,723,600
|
| Maturity: | Dec. 23, 2009
|
| Coupon: | Conditional at 4% if index closes above barrier
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 4% if index ever closes above index barrier; otherwise, par plus any index gain, par if index declines by no more than 25% or par minus 1% for every 1% decline beyond 25%
|
| Initial index level: | 868.57
|
| Index barrier: | 1,262.29, 145.33% of initial level
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 18
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1.25%
|
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