Published on 7/17/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5 million 97% protected absolute peak return barrier notes tied to Russell 2000
By Jennifer Chiou
New York, July 17 - HSBC USA Inc. priced $5 million of zero-coupon 97% principal protection absolute peak return barrier notes due July 15, 2009 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index never closes above or below its initial level by more than the barrier amount, the payout at maturity will be par of $10 plus the absolute value of the highest positive or lowest negative index return on any trading day during the life of the notes. Otherwise, the payout will be 97% of par.
The barrier amount is 20.3%.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
Issuer: | HSBC USA Inc.
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Issue: | 97% principal protection absolute peak return barrier notes
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Underlying index: | Russell 2000
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Amount: | $5 million
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Maturity: | July 15, 2009
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the index never closes outside the barrier levels, par plus the absolute value of the highest positive or lowest negative index return on any trading day during the life of the notes; otherwise, 97% of par
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Initial index level: | 662.35
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Upper index barrier: | 796.81, 120.3% of initial index level
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Lower index barrier: | 527.89, 79.7% of initial index level
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Pricing date: | July 15
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Settlement date: | July 18
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Underwriters: | UBS Financial Services Inc., HSBC USA Inc.
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Fees: | 1.25%
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