Published on 3/5/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $3.91 million semiannual review notes linked to gold via JPMorgan
By Jennifer Chiou
New York, March 5 - HSBC USA Inc. priced $3.91 million of 0% semiannual review notes due March 9, 2011 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
If the price closes at or above its call level on a semiannual valuation date, then the notes will be automatically called and investors will receive par plus an annualized return of 12%. The valuation dates are Sept. 4, 2009, March 4, 2010, Sept. 3, 2010 and March 4, 2011. The call level is 90% of the initial price on the first valuation date and 100% of the initial price on the remaining valuation dates.
If the notes are not called, then the payout at maturity will be par unless the price declines by more than 20%. In that case, investors will lose 1% for every 1% decline beyond 20%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Semiannual review notes
|
| Underlying asset: | Gold
|
| Amount: | $3.91 million
|
| Maturity: | March 9, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | Automatically if the price closes at or above its call level on a semiannual valuation date, at par plus an annualized return of 12%; the valuation dates are Sept. 4, 2009, March 4, 2010, Sept. 3, 2010 and March 4, 2011; the call level is 90% of the initial price on the first valuation date and 100% of the initial price on the remaining valuation dates
|
| Payout at maturity: | Par unless price falls by more than 20%, in which case 1% loss for every 1% decline beyond 20%
|
| Initial price: | $908.50
|
| Buffer price: | $726.80, 80% of the initial price
|
| Pricing date: | March 4
|
| Settlement date: | March 9
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1.75%
|
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