By Jennifer Chiou
New York, Jan. 28 - HSBC USA Inc. priced $3.9 million of 0% barrier optimization securities with partial protection due Feb. 3, 2010 linked to the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
If the fund never closes above its price barrier - 141.57% of the initial level - on any trading day, the payout at maturity will be par of $10 plus any gain on the fund.
If the fund closes above its barrier, the payout will be par plus 3%.
Investors will receive par for losses up to 25% and will share in any losses beyond 25%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier optimization securities
|
| Underlying fund: | iShares MSCI EAFE index fund
|
| Amount: | $3,896,310
|
| Maturity: | Feb. 3, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any fund gain if fund stays below price barrier; par plus 3% if fund closes above barrier; par if index falls by 25% or less and share in losses beyond 25%
|
| Initial fund price: | $39.76
|
| Price barrier: | $56.29, 141.57% of initial price
|
| Pricing date: | Jan. 27
|
| Settlement date: | Jan. 30
|
| Underwriters: | UBS Financial Services Inc., HSBC USA Inc.
|
| Fees: | 1.25%
|
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