Published on 4/18/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10.75 million 0% securities linked to index basket via UBS
By Laura Lutz
Des Moines, April 18 - HSBC USA Inc. priced $10.75 million 0% return optimization securities with partial protection due May 22, 2009 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
The basket consists of the S&P 500 index with a 30% weight, the Nasdaq 100 index with a 15% weight, the FTSE 100 index with a 15% weight, the Dow Jones Euro Stoxx 50 index with a 15% weight, the MSCI Emerging Markets index with a 15% weight and the HSBC Investable Climate Change with a 10% weight.
If the final index level is at least the initial level, the payout at maturity will be par plus 200% of any gain on the index, capped at a maximum payout equal to 113% of par.
If the index declines by up to 10%, the payout will be par. Investors will lose 1% for each 1% that the index declines beyond 10%.
| Issuer: | HSBC USA Inc.
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| Issue: | Return optimization securities with partial protection
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| Underlying index: | S&P 500 index (30% weight), Nasdaq 100 index (15% weight), FTSE 100 index (15% weight), Dow Jones Euro Stoxx 50 index (15% weight), MSCI Emerging Markets index (15% weight) and HSBC Investable Climate Change (10% weight)
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| Amount: | $10.75 million
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| Maturity: | May 22, 2009
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If final index level is at least initial level, par plus 200% of any index gain, capped at payout equal to 113% of par; par if index declines by up to 10%; investors lose 1% for each 1% that index declines beyond 10%
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| Initial level: | 1,364.71 for S&P 500; 1,846.89 for Nasdaq 100; 6,046.20 for FTSE 100; 3,748.56 for Euro Stoxx 50; 1,164.99 for MSCI Emerging Markets; 244.30 for HSBC Investable Climate Change
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| Pricing date: | April 16
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| Settlement date: | April 21
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| Underwriters: | UBS Financial Services Inc.; HSBC USA Inc.
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| Fees: | 1.25%
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