By Laura Lutz
Des Moines, March 4 - HSBC USA Inc. priced $2 million of 0% equity buffer notes due June 8, 2009 linked to a basket consisting of the S&P 500 index and shares of the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The fund shares have a weight of 30% and the S&P 500 has a weight of 70%.
If the final basket level is at least the initial level, the payout at maturity will be par plus 200% of any basket gain, capped at a payout equal to 122% of par.
If the basket level declines by up to 10%, the payout will be par. Investors will lose 1% for each 1% that the baskets decline past 10%.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Equity buffer notes
|
| Underlying basket: | Shares of Financial Select Sector SPDR fund with 30% weight and S&P 500 index with 70% weight
|
| Amount: | $2 million
|
| Maturity: | June 8, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final basket level is at least initial level, par plus 200% of any basket gain, capped at payout equal to 122% of par; par if baskets decline by up to 10%; investors lose 1% for each 1% decline past 10%
|
| Initial levels: | 25.48 for Financial Select Sector; 1,331.34 for S&P 500
|
| Pricing date: | March 3
|
| Settlement date: | March 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0%
|
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