By Jennifer Chiou
New York, June 23 - HSBC USA Inc. priced $10 million of 0% performance securities with contingent protection due June 23, 2011 linked to the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is at least the initial index level, the payout at maturity will be par plus 104.3% of any gain on the index.
If the final index level is less than the initial level but the index does not close below its trigger level - 50% of the initial level - during the life of the notes, the payout will be par.
If the final level is less than the initial level and the index has closed below the trigger level, investors will receive par times the index performance.
HSBC USA Inc. will be the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities with contingent protection
|
| Amount: | $10 million
|
| Underlying index: | Nikkei 225 index
|
| Maturity: | June 23, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 104.3% of any positive return if index gains; par if final index level is below initial level but stays above 50% of initial level during life of notes; otherwise, par times index performance
|
| Initial index level: | 14,130.17
|
| Trigger level: | 7,065.09, 50% of initial level
|
| Pricing date: | June 19
|
| Settlement date: | June 24
|
| Underwriter: | HSBC USA Inc.
|
| Fees: | 1.5%
|
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