By Toni Weeks
San Diego, Sept. 29 - HSBC USA Inc. priced $7.96 million of 0% trigger return optimization securities due Sept. 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.
If the basket return is positive, the payout at maturity will be par of $10 plus double the basket gain, subject to a maximum return of 59.26%.
If the final basket level is 75% to 100% of the basket level, the payout will be par.
Otherwise, the payout will be par plus the basket return with full exposure to losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger return optimization securities
|
| Underlying ETFs: | SPDR Trust, series 1 (30% weight), iShares MSCI EAFE index fund (30% weight) and iShares MSCI Emerging Markets index fund (40% weight)
|
| Amount: | $7,964,000
|
| Maturity: | Sept. 30, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus double any basket gain, up to maximum return of 59.26%; if final basket level is 75% to 100% of initial level, par; otherwise, par plus basket return
|
| Initial prices: | $117.60 for SPDR; $49.35 for iShares MSCI EAFE; $37.58 for iShares MSCI Emerging Markets
|
| Pricing date: | Sept. 27
|
| Settlement date: | Sept. 30
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40433C411
|
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