Published on 3/30/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $510,000 bearish autocallable securities linked to S&P 500 via UBS
By E. Janene Geiss
Philadelphia, March 30 - HSBC USA Inc. priced $510,000 of 0% bearish autocallable optimization securities with contingent protection due Sept. 30, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the agents.
The notes will be automatically called if the index closes at or below its initial level on any of six quarterly observation dates. Investors will receive par of $10 plus an annualized return of 19.5% to the settlement date.
If the notes are not called, the payout at maturity will be par unless the final index level is greater than the trigger level - 120% of the initial level. In that case, investors will lose 1% for every 1% index gain.
| Issuer: | HSBC USA Inc.
|
| Issue: | Bearish autocallable optimization securities with contingent protection
|
| Underlying index: | S&P 500 index
|
| Amount: | $510,000
|
| Maturity: | Sept. 30, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If the final index level is less than or equal to the trigger level, par; otherwise, 1% loss for every 1% index gain
|
| Call: | Automatically if index closes at or below the initial level on an observation date; for each $10.00 note, payout will be $10.49 if called June 25, 2009, $10.98 if called Sept. 25, 2009, $11.46 if called Dec. 28, 2009, $11.95 if called March 26, 2010, $12.44 if called June 25, 2010 and $12.93 if called Sept. 24, 2010
|
| Initial index level: | 832.86
|
| Trigger level: | 999.43, 120% of initial level
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agents: | UBS Financial Services Inc. and HSBC USA 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.
