By E. Janene Geiss
Philadelphia, March 27 - HSBC USA Inc. priced $2.71 million of 0% semiannual review notes due April 14, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
The notes will be automatically called if the index closes at or above its call level on any of four valuation dates. The call level is 80% of the initial price on the first valuation date, 90% of the initial price on the second valuation date, 95% of the initial price on the third valuation date and 100% of the initial price on the last valuation date.
The redemption price is 106.7% of par if the notes are called on Sept. 28, 2009, 113.4% of par if called on April 9, 2010, 120.1% of par if called on Sept. 27, 2010 and 126.8% of par if called on April 11, 2011.
If the notes are not called, the payout at maturity will be par unless the index falls by more than 10%, in which case investors will lose 1.1111% for every 1% decline beyond 10%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Semiannual review notes
|
| Underlying index: | S&P 500
|
| Amount: | $2.71 million
|
| Maturity: | April 14, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | Automatically if index closes at or above its call level of 80% of initial level on first valuation date, 90% of initial level on second valuation date, 95% of the initial level on the third valuation date or 100% of initial level on the final valuation date; at 106.7% of par if notes are called Sept. 28, 2009, 113.4% of par if called April 9, 2010, 120.1% of par if called Sept. 27, 2010 and 126.8% of par if called April 11, 2011
|
| Payout at maturity: | Par unless index falls by more than 10%, in which case 1.1111% loss for every 1% decline beyond 10%
|
| Initial index level: | 832.86
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1.5%
|
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