Published on 5/15/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.96 million autocallable optimization securities linked to S&P 500 Financials
By Angela McDaniels
Tacoma, Wash., May 15 - HSBC USA Inc. priced $8.96 million of 0% autocallable optimization securities with contingent protection due Nov. 18, 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 of six quarterly observation dates. Investors will receive par of $10 plus an annualized return of 19% to the settlement date.
If the notes are not called, the payout at maturity will be par unless the index falls below the trigger level - 55% of the initial level - during the life of the notes and finishes below the initial level, in which case investors will be fully exposed to 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: | $8,961,650
|
| Maturity: | Nov. 18, 2009
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If the index falls 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 if index closes at or above the initial level on an observation date; for each $10.00 note, payout will be $10.48 if called on Aug. 13, 2008, $10.95 if called on Nov. 13, 2008, $11.43 if called on Feb. 13, 2009, $11.90 if called on May 18, 2009, $12.38 if called on Aug. 13, 2009 and $12.85 if called on Nov. 13, 2009
|
| Initial index level: | 348.43
|
| Trigger level: | 191.64, 55% of initial level
|
| Pricing date: | May 13
|
| Settlement date: | May 16
|
| Underwriter: | UBS Financial Services Inc.
|
| Fees: | 1.5%
|
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