Published on 4/23/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $21.85 million autocallable securities linked to S&P 500 Financials via UBS
By Laura Lutz
Des Moines, April 23 - HSBC USA Inc. priced $21.85 million of 0% autocallable optimization securities with contingent protection due Oct. 26, 2009 linked to the S&P 500 Financials index, according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
The notes will be automatically called if the closing level of the index is at or above its starting level on any observation date.
The call price will be equal to par plus an annual return of 23.85% to the relevant observation date.
The observation dates are July 21, 2008, Oct. 21, 2008, Jan. 21, 2009, April 21, 2009, July 21, 2009 and Oct. 21, 2009.
At maturity, investors will receive par if the index stays above the trigger level - 55% of the index's starting level - during the life of the notes. If the index has ever closed below the trigger level, the payout will be par times the index performance.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying index: | S&P 500 Financials index
|
| Amount: | $21,844,520
|
| Maturity: | Oct. 26, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the index closes below the trigger level during the life of the notes, par times index performance; otherwise, par
|
| Call: | Automatically called if index is at or above initial level on July 21, 2008, Oct. 21, 2008, Jan. 21, 2009, April 21, 2009, July 21, 2009 or Oct. 21, 2009; at par plus annual return of 23.85% to relevant observation date
|
| Initial level: | 348.76
|
| Trigger level: | 191.82, 55% of initial level
|
| Pricing date: | April 21
|
| Settlement date: | April 24
|
| Agents: | UBS Financial Services Inc., HSBC USA Inc.
|
| Fees: | 1.5%
|
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