Published on 6/10/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC upsizes 90% protected emerging markets-linked notes linked to ETFs to $19.66 million
By Angela McDaniels
Tacoma, Wash., June 10 - HSBC USA Inc. priced $100,000 of additional zero-coupon 90% principal-protected emerging markets-linked notes due June 12, 2013 linked to four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The notes bring the issue size to $19.66 million. The company priced $19.56 million of notes on June 5.
The ETFs are the iShares MSCI Emerging Markets index fund, the iShares MSCI Brazil index fund, the iShares FTSE/Xinhua China 25 index fund and the iShares S&P Latin American 40 index fund.
If the return of the worst-performing fund is positive, the payout at maturity will be par plus 95% of the gain.
If the return of the worst-performing fund is negative, the payout will be par minus the decline, subject to a maximum loss of 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | 90% principal-protected emerging markets-linked notes
|
| Underlying ETFs: | iShares MSCI Emerging Markets index fund, iShares MSCI Brazil index fund, iShares FTSE/Xinhua China 25 index fund and iShares S&P Latin American 40 index fund
|
| Amount: | $19,655,000, upsized from $19,555,000
|
| Maturity: | June 12, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 95% of any gain in worst-performing fund; par minus any decline in worst-performing fund, up to maximum loss of 10%
|
| Initial share prices: | $33.65 for MSCI Emerging Markets, $55.86 for MSCI Brazil, $39.11 for FTSE/Xinhua China and $36.09 for S&P Latin American
|
| Pricing date: | June 5 for $19,555,000; June 10 for $100,000
|
| Settlement date: | June 12
|
| Agent: | HSBC Securities (USA) Inc
|
| Fees: | 4.35%
|
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