By Angela McDaniels
Tacoma, Wash., Feb. 23 - HSBC USA Inc. priced $139,000 of 8.5% callable yield notes due Feb. 28, 2011 linked to the iShares MSCI EAFE index fund and iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes are callable at par on any interest payment date.
If the notes are not called, the payout at maturity will be par unless either underlying fund falls to or below its knock-in level - 70% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst-performing fund, up to a maximum payout of par.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Callable yield notes
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Underlying funds: | iShares MSCI EAFE index fund and iShares MSCI Emerging Markets index fund Amount: | $139,000
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Maturity: | Feb. 28, 2011
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Coupon: | 8.5%, payable quarterly
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Price: | Par
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Payout at maturity: | If either fund falls to or below its knock-in level during the life of the notes, par plus the return of the worst-performing fund, capped at par; otherwise, par
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Call option: | At par on interest payment dates
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Initial levels: | $52.94 for iShares MSCI EAFE and $39.36 for iShares MSCI Emerging Markets
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Pricing date: | Feb. 19
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Settlement date: | Feb. 26
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 4042K0P41
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