Published on 12/29/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.75 million contingent return optimization securities on Russell 2000
By Jennifer Chiou
New York, Dec. 29 - HSBC USA Inc. priced $6.75 million of 0% contingent return optimization securities due Dec. 31, 2013 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is at least 60% of the initial index level, the payout at maturity will be par of $10 plus the index return, subject to a minimum return of 10% and a maximum return of 32.5%.
If the final index level is less than 60% of the initial level, investors will be fully exposed to the index decline from the initial level.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as distributor.
Issuer: | HSBC USA Inc.
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Issue: | Contingent return optimization securities
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Underlying index: | Russell 2000
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Amount: | $6,750,450
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Maturity: | Dec. 31, 2013
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If final index level is at least 60% of initial index level, par plus index return, subject to minimum return of 10% and maximum return of 32.5%; otherwise, full exposure to index decline
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Initial index level: | 751.31
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Trigger level: | 450.79, 60% of initial level
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Pricing date: | Dec. 27
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Settlement date: | Dec. 30
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Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as distributor
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Fees: | 2%
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Cusip: | 40433K835
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