Tacoma, Wash., March 28 - HSBC USA Inc. priced $16.4 million of 0% autocallable optimization securities with contingent protection due Sept. 30, 2009 linked to the S&P 500 Financials index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called if the index closes at or above its initial level on any quarterly observation date. If the notes are called, the redemption amount will be par of $10 plus an annualized return of 27.2% to the call date.
The observation dates are June 25, 2008, Sept. 25, 2008, Dec. 26, 2008, March 25, 2009, June 25, 209 and Sept. 25, 2009.
If the notes are not called, the payout at maturity will be par unless the index closes below the trigger level, 50% of the initial level, during the life of the notes and finishes below the initial level, in which case investors will receive par minus the index decline.
UBS Financial Services Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying index: | S&P 500 Financials
|
| Amount: | $16,413,300
|
| Maturity: | Sept. 30, 2009
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index closes below the trigger level during the life of the notes and finishes below the initial level, par minus the index decline; otherwise, par
|
| Call: | Automatically with a yield to call of 27.2% if index closes at or above its initial level on a quarterly observation date
|
| Initial index level: | 345.57
|
| Trigger level: | 172.79%, 50% of initial level
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Underwriter: | UBS Financial Services Inc.
|
| Fees: | 1.5%
|
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