Published on 9/29/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $2.51 million performance securities linked to six indexes via UBS
By E. Janene Geiss
Philadelphia, Sept. 29 - HSBC USA Inc. priced $2.51 million 0% performance securities with contingent protection due Sept. 30, 2013 linked to a basket of indexes, according to a 424B filing with the Securities and Exchange Commission.
The basket includes the Dow Jones Euro Stoxx 50 index with a 35% weight, Nikkei 225 index with a 25% weight, FTSE 100 index with a 20% weight, Swiss Market index with a 7.5% weight, S&P/ASX 200 index with a 7.5% weight and MSCI Emerging Markets index with a 5% weight.
If the final basket return is positive, the payout at maturity will be par of $10 plus 132.4% of the basket return.
If the final basket return is negative, the payout will be par if the basket never closes below the trigger level - 50% of the initial level - during the life of the notes. Otherwise, investors will receive par plus the final basket return.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities with contingent protection
|
| Amount: | $2,512,030
|
| Underlying indexes: | Dow Jones Euro Stoxx 50 (35% weight), Nikkei 225 (25% weight), FTSE 100 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and MSCI Emerging Markets (5% weight)
|
| Maturity: | Sept. 30, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 132.4% of any positive basket return; par if basket never closes below the 50% trigger level but finishes below initial basket level; otherwise par plus final basket return
|
| Initial index levels: | 3,207.11 for Euro Stoxx; 12,006.53 for Nikkei; 5,197.02 for FTSE; 6,945.49 for Swiss Market; 4,927.40 for S&P/ASX 200; 838.29 for MSCI Emerging Markets
|
| Trigger level: | 50% of initial basket level
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Underwriters: | UBS Financial Services Inc., HSBC USA Inc.
|
| Fees: | 3.5%
|
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