By Susanna Moon
Chicago, July 11 - HSBC USA Inc. priced $1 million of 0% autocallable optimization notes due July 16, 2010 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying funds are the Standard & Poor's Depositary Receipts, the PowerShares QQQ Trust, Series 1 and the Midcap SPDR Trust.
The notes will be automatically called if the worst performing fund closes at or above its initial level on any redemption valuation date. They will be called at 103.25 on Oct. 8; at 106.5 on Jan. 9, 2009; at 109.75 on April 8, 2009; at 113 on July 9, 2009; at 116.25 on Oct. 8, 2009; at 119.5 on Jan. 11, 2010; at 122.75 on April 9, 2010; and at 126 on July 9, 2010.
If the notes are not called, the payout at maturity will be par unless the worst performing fund closes below the trigger level - 75% of the initial level - during the life of the notes and finishes below the initial level, in which case investors will receive a number of the worst performer's shares equal to par divided by the initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying funds: | Standard & Poor's Depositary Receipts, PowerShares QQQ Trust, Series 1 and Midcap SPDR Trust
|
| Amount: | $1 million
|
| Maturity: | July 16, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless worst performing fund closes below the trigger level during the life of the notes and finishes below the initial level, in which case number of worst performer's shares equal to par divided by initial price
|
| Call: | Automatically worst performing fund closes at or above its initial level on any redemption valuation date
|
| Initial prices: | $124.79 for S&P Depositary Receipts, $44.75 for PowerShares QQQ and $143.15 for Midcap SPDR
|
| Trigger level: | 75% of initial prices
|
| Pricing date: | July 9
|
| Settlement date: | July 16
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.75%
|
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