New Issue: HSBC sells $5.25 million semiannual review notes linked to S&P 500 index via JPMorgan

By E. Janene Geiss

Philadelphia, Feb. 13 - HSBC USA Inc. priced $5.25 million of 0% semiannual review notes due March 1, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

J.P. Morgan Securities Inc. is the agent.

The notes will be automatically called at par plus an annualized return of 115.5% if the index closes at or above its call level, which is 90% of the initial index level on Feb. 26, 2010, par plus an annualized return of 123.25% if the index closes at 100% of the initial level on Aug. 26, 2010, and par plus 131% if the index closes at 100% of the initial level on Feb. 24, 2011.

If the notes are not called, payout at maturity will be par unless the index falls by more than 10%, in which case investors will lose 1.1111% for every 1% decline beyond 10%.

Issuer:	HSBC USA Inc.
Issue:	Semiannual review notes
Underlying index:	S&P 500
Amount:	$5,254,000
Maturity:	March 1, 2011
Coupon:	0%
Price:	Par
Call:	Automatically at par plus 115.5% if the index closes at 90% of the initial index level Feb. 26, 2010; par plus 123.25% if the index closes at 100% of the initial level on Aug. 26, 2010; par plus 131% if the index closes at 100% on Feb. 24, 2011
Payout at maturity:	Par unless index falls by more than 10%, in which case 1.1111% loss for every 1% decline beyond 10%
Initial index level:	835.19
Pricing date:	Feb. 12
Settlement date:	Feb. 18
Agent:	J.P. Morgan Securities Inc.
Fees:	1.5%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.