By Angela McDaniels
Tacoma, Wash., June 13 - HSBC USA Inc. priced $500,000 of 0% autocallable notes due June 18, 2010 linked to the common stocks of JPMorgan Chase & Co. and Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically if the worst-performing stock closes at or above its initial price on any of eight quarterly auto redemption dates. Investors will receive par plus an annualized return of 24% to the redemption date.
The call dates are Sept. 11, 2008, Dec. 11, 2008, March 11, 2009, June 11, 2009, Sept. 11, 2009, Dec. 11, 2009, March 11, 2010 and June 11, 2010.
If the notes are not called, the payout at maturity will be par if the final price of each stock is greater than or equal to its barrier price - 75% of its initial price. If the final price of the worst-performing stock is less than its barrier price, the payout will be a number of shares of the worst-performing stock equal to par divided by that stock's initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying stocks: | JPMorgan Chase & Co. and Goldman Sachs Group, Inc.
|
| Amount: | $500,000
|
| Maturity: | June 18, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the final price of the worst-performing stock is less than its barrier price, a number of shares of that stock equal to its exchange ratio; otherwise, par
|
| Call: | Automatically if the worst-performing stock closes at or above its initial price on an auto redemption date; payout will be par plus annualized return of 24% to redemption date
|
| Initial share prices: | $37.13 for JPMorgan, $162.40 for Goldman Sachs
|
| Barrier prices: | $27.8475 for JPMorgan, $121.80 for Goldman Sachs; 75% of initial price
|
| Exchange ratios: | 26.9324 for JPMorgan, 6.1576 for Goldman Sachs
|
| Pricing date: | June 11
|
| Settlement date: | June 18
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
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