By Laura Lutz
Des Moines, Feb. 22 - HSBC USA Inc. prices $7.3 million of 0% notes with contingent protection due Feb. 25, 2011 linked to a basket of 15 financial stocks, according to an FWP filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Wells Fargo & Co.; Citigroup Inc.; Federal National Mortgage Association; Wachovia Corp.; MBIA Inc.; JPMorgan Chase & Co.; Bank of America Corp.; Bear Stearns Cos. Inc.; Lehman Brothers Holdings Inc.; Washington Mutual, Inc.; SLM Corp.; Ambac Financial Group, Inc.; Goldman Sachs Group, Inc.; Merrill Lynch & Co., Inc.; and Assured Guaranty Ltd.
If the basket stays at or above the trigger level - 80% of the initial level - or finishes above its initial level, the payout at maturity will be par plus 131.33% of any gain on the basket.
Otherwise, the payout will be par times the basket performance.
HSBC Securities (USA) is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Equity-linked notes with contingent protection
|
| Underlying basket: | Wells Fargo & Co. (Symbol: WFC); Citigroup Inc. (Symbol: C); Federal National Mortgage Association (Symbol: FNM); Wachovia Corp. (Symbol: WB); MBIA Inc. (Symbol: MBIA); JPMorgan Chase & Co. (Symbol: JPM); Bank of America Corp. (Symbol: BAC); Bear Stearns Cos. Inc. (Symbol: BSC); Lehman Brothers Holdings Inc. (Symbol: LEH); Washington Mutual, Inc. (Symbol: WM); SLM Corp. (Symbol: SLM); Ambac Financial Group, Inc. (Symbol: ABK); Goldman Sachs Group, Inc. (Symbol: GS); Merrill Lynch & Co., Inc. (Symbol: MER); and Assured Guaranty Ltd. (Symbol: AGO)
|
| Amount: | $7,303,000
|
| Maturity: | Feb. 25, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket stays at or above 80% of initial level during life of notes or finishes above initial level, par plus 131.33% of any basket gain; otherwise, par times basket performance
|
| Pricing date: | Feb. 20
|
| Settlement date: | Feb. 25
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
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