By Angela McDaniels
Tacoma, Wash., May 28 - HSBC USA Inc. priced $13.31 million of 0% autocallable optimization securities with contingent protection due June 2, 2010 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes above its initial share price on any of 12 monthly observation dates, the notes will be called and investors will receive par of $10 plus an annualized return of 18.9%. The first and last observation dates are June 26, 2009 and May 26, 2010, respectively.
If the notes are not called, the payout at maturity will be par if the final share price is at least 70% of the initial price. Otherwise, investors will receive par plus the share price return.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying fund: | Energy Select Sector SPDR fund
|
| Amount: | $13,305,530
|
| Maturity: | June 2, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par if final share price is at least equal to the trigger price; otherwise, par plus the fund return
|
| Call option: | At par plus annualized return of 18.9% if fund closes above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $49.64
|
| Trigger price: | $34.75, 70% of initial price
|
| Pricing date: | May 26
|
| Settlement date: | May 29
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1.25%
|
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