By Susanna Moon
Chicago, March 13 - HSBC USA Inc. priced another $725,000 of 0% notes due March 10, 2010 linked to a basket of three buffered return enhanced components, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $3.87 million, up from $725,000.
J.P. Morgan Securities Inc. is the agent.
The basket consists of the Dow Jones Euro Stoxx 50 index with a 55% weight, the FTSE 100 index with a 25% weight and the Tokyo Stock Price index with a 20% weight.
The payout at maturity will be par plus the basket return, which will be the sum of the weighted returns for the indexes.
If an index finishes above its initial level, its return will be double the gain, up to a maximum return of 23.5% for the Euro Stoxx, 21.5% for the FTSE and 18% for the Tokyo Stock Price.
Each component return will be 0% for losses of up to 10% and will be 0% minus 1.1111% for every 1% decline beyond 10%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Notes linked to a basket of three buffered return enhanced components
|
| Underlying basket: | Dow Jones Euro Stoxx 50 index (55% weight), FTSE 100 index (25% weight) and Tokyo Stock Price index (20% weight)
|
| Amount: | $3,865,000, up from $725,000
|
| Maturity: | March 10, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus the sum of the three index returns
|
| Index returns: | Double any gain, capped at 23.5% for Euro Stoxx, 21.5% for FTSE and 18% for Tokyo Stock Price; 0% if the index falls by 10% or less; if the index falls by more than 10%, 0% minus 1.1111% for each 1% decline beyond 10%
|
| Initial index levels: | 2,011.68 for Euro Stoxx; 3,889.06 for FTSE; 739.53 for Tokyo Stock Price
|
| Pricing date: | Feb. 20
|
| Settlement date: | Feb. 25
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1%
|
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