Published on 5/27/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.36 million trigger notes linked to three funds
By Toni Weeks
San Diego, May 27 - HSBC USA Inc. priced $4.36 million of 0% trigger return optimization securities due May 30, 2014 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR Trust Series 1 with a 30% weight, the iShares MSCI EAFE index fund with a 30% weight and the iShares MSCI Emerging Markets index fund with a 40% weight.
The payout at maturity will be par of $10 plus double any increase in the basket, subject to a maximum return of 37.5%. Investors will receive par if the basket falls by 25% or less and will be fully exposed to the decline from the initial level if the basket falls beyond 25%.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger return optimization securities
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Underlying funds: | SPDR Trust Series 1 with a 30% weight, iShares MSCI EAFE index fund with a 30% weight, iShares MSCI Emerging Markets index fund with a 40% weight
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Amount: | $4,359,300
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Maturity: | May 30, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par of $10 plus double any increase in basket, subject to maximum return of 37.5%; par if basket falls by up to 25%; full exposure to losses if basket falls beyond 25%
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Initial index level: | $132.37 for SPDR Trust, $59.80 for iShares MSCI EAFE fund, $46.66 for EM fund
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Trigger level: | 75% of initial price
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Pricing date: | May 25
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Settlement date: | May 31
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Agent: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 90267F444
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