By Susanna Moon
Chicago, Oct. 16 - HSBC USA Inc. priced another $3.5 million of 0% Elements exchange-traded notes due June 16, 2023 linked to the S&P Commodity Trends Indicator - Total Return, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer priced $1 million of the notes at 90.9 on Oct. 14 and $2.5 million of the notes at 91.6 on Oct. 15.
In June 2008, the company said it would sell up to $250 million of the Elements. Since then, it has priced a total of $81 million notes in 33 tranches at prices ranging from 90.9 to 120.4.
The payout at maturity will be par of $10 plus the index return, less an annual investor fee equal to 0.75% multiplied by the proportion of days elapsed.
The notes are putable at any time, subject to a minimum principal amount of $2.5 million, and the issuer can call the notes beginning June 16, 2011 if $5 million principal amount or less remains outstanding. In both cases, the payout will be determined in the same way as the payout at maturity.
The notes are listed on the NYSE Arca under the symbol "LSC."
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Elements exchange-traded notes
|
| Underlying index: | S&P Commodity Trends Indicator - Total Return
|
| Amount: | $81 million, increased from $2 million
|
| Maturity: | June 16, 2023
|
| Coupon: | 0%
|
| Price: | 113.1 for original $2 million; 90.9 for $1 million and 91.6 for $2.5 million
|
| Payout at maturity: | Par of $10 plus the index return minus an annual investor fee of 0.75%
|
| Put option: | At any time, subject to a minimum of $2.5 million
|
| Call option: | From June 16, 2011 onward if $5 million of notes or less remains outstanding
|
| Pricing dates: | Nov. 20, 2008 for original $2 million; Oct. 14 for $1 million and Oct. 15 for $2.5 million
|
| Settlement dates: | Nov. 25, 2008 for original $2 million; Oct. 19 for $1 million and Oct. 20 for $2.5 million
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Listing: | NYSE Arca: LSC
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