By E. Janene Geiss
Philadelphia, April 7 - HSBC USA Inc. priced a $5.5 million issue of 0% return optimization securities with contingent protection due April 7, 2010 linked to the Nasdaq 100 index, according to a 424B filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
If the index return is zero or positive, the payout at maturity will be par plus 200% of any index gain, capped at a maximum payout equal to 136% of par.
If the index return is negative and the index stays at or above its trigger level - 75% of its initial level - during the life of the notes, the payout will be par.
If the index return is negative and the index closes below its trigger level at any time, investors will be fully exposed to any index decline.
Issuer: | HSBC USA Inc.
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Issue: | Return optimization securities
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Underlying index: | Nasdaq 100
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Amount: | $5.5 million
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Maturity: | April 7, 2010
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus double the absolute value of any increase in the index, capped at maximum return of 36%; full exposure to any index decline
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Initial index level: | 1,848.80
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Trigger level: | 1,386.60, 75% of the initial level
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Pricing date: | April 2
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Settlement date: | April 7
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Underwriters: | UBS Financial Services and HSBC USA Inc.
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Fees: | 1.2%
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