By Susanna Moon
Chicago, March 30 - HSBC USA Inc. priced $2.16 million of 0% performance securities with contingent protection due March 31, 2015 based on the performance of two funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares MSCI EAFE index fund with a 70% weight and the iShares MSCI Emerging Markets index fund with a 30% weight.
The payout at maturity will be par of $10 plus 105.8% of any basket gain, up to a maximum gain of 42.35%.
Investors will receive par if the basket falls by up to 30% and will be exposed to the full amount of any decline if the basket falls beyond the trigger level.
UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities with contingent protection
|
| Underlying indexes: | iShares MSCI EAFE index fund (70% weight) and iShares MSCI Emerging Markets index fund (30% weight)
|
| Amount: | $2,159,300
|
| Maturity: | March 31, 2015
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 105.8% of any basket gain; exposure to full amount of losses if the 30% trigger level is passed
|
| Initial index level: | $55.51 for EAFE, $41.12 for EM
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40428H326
|
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