Published on 3/28/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.31 million notes with contingent return linked to index basket via UBS
By E. Janene Geiss
Philadelphia, March 28 - HSBC USA Inc. priced a $2,311,970 issue of 0% performance securities with contingent return due March 31, 2011 linked to an index basket via UBS Financial Services Inc. and HSBC USA Inc., according to an FWP filing with the Securities and Exchange Commission.
The basket consists of the Dow Jones Euro Stoxx 50 with a 40% weight, FTSE 100 with a 25% weight, Nikkei 225 with a 20% weight, Swiss Market Index, S&P ASX 200 and MSCI Emerging Markets Index, each with a 5% weight.
If the basket does not close below the trigger level - 70% of the initial level - during the life of the notes, the payout will be par of $10 plus the greater of the basket return and the contingent return of 14.7%.
If the trigger is hit during the life of the notes, investors will receive par multiplied by the basket return.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities with contingent return
|
| Underlying basket: | Dow Jones Euro Stoxx 50 (40% weight), FTSE 100 (25% weight), Nikkei 225 (20% weight), Swiss Market Index, S&P ASX 200 and MSCI Emerging Markets Index (each with a 5% weight)
|
| Amount: | $2,311,970
|
| Maturity: | March 31, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par of $10 plus the greater of the basket return or a contingent return of 14.7% if the basket never declines by more than 70% of its initial level during the life of the notes; if the trigger is hit, par times the basket return
|
| Initial index level: | 3,611.45 for Dow Jones Euro Stoxx 50; 5,660.40 for FTSE 100; 12,706.63 for Nikkei 225; 7,184.55 for Swiss Markets Index; 5,381.40 for S&P ASX 200; 1,107.60 for MSCI Emerging Markets Index
|
| Trigger level: | 70% of initial index level
|
| Contingent return: | 14.7%
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
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