Published on 5/19/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $27.02 million knock-out buffer notes linked to Asian index basket via JPMorgan
By Angela McDaniels
Tacoma, Wash., May 19 - HSBC USA Inc. priced $27.02 million of 0% knock-out buffer notes due Nov. 19, 2010 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
The basket includes the Hang Seng China Enterprises index with a 33% weight, the Korea Stock Price Index 200 with a 23% weight, the MSCI Taiwan index with a 20% weight, the Hang Seng index with a 16% weight and the MSCI Singapore index with an 8% weight.
If the basket falls below the knock-out buffer - 70% of the initial basket level - during the life of the notes, the payout at maturity will be par plus the basket return. Otherwise, the payout will be par plus the greater of the basket return and 4%.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying indexes: | Hang Seng China Enterprises (33% weight), Korea Stock Price 200 (23% weight), MSCI Taiwan (20% weight), Hang Seng (16% weight) and MSCI Singapore (8% weight)
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Amount: | $27,016,000
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Maturity: | Nov. 19, 2010
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If the basket falls below 70% of the initial level during the life of the notes, par plus the basket return; otherwise, par plus the greater of the basket return and 4%
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Initial index levels: | 9,607.29 for Hang Seng China Enterprises; 177.80 for Kospi 200; 237.64 for MSCI Taiwan; 16,790.70 for Hang Seng; 260.95 for MSCI Singapore
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Pricing date: | May 15
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Settlement date: | May 20
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 1.25%
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