Published on 4/29/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $7.1 million autocallable optimization notes tied to iShares MSCI Brazil
By Angela McDaniels
Tacoma, Wash., April 29 - HSBC USA Inc. priced $7.1 million of 0% autocallable optimization securities with contingent protection due April 29, 2011 linked to the iShares MSCI Brazil index fund, 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 exchange-traded fund's shares close at or above the initial share price on any of four quarterly observation dates. The redemption amount will be par of $10 plus an annualized call return of 31.9%.
If the notes are not called and the final share price is greater than or equal to the trigger price - 50% of the initial price - the payout at maturity will be par. If the final share price is less than the trigger price, investors will receive par plus the fund return.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying ETF: | iShares MSCI Brazil index fund
|
| Amount: | $7,099,440
|
| Maturity: | April 29, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par if final share price is greater than or equal to trigger level; otherwise, par plus fund return
|
| Call: | Automatically if fund's shares close at or above initial share price on a quarterly observation date; payout will be par plus 15.95% if called Oct. 27, 2009, par plus 31.90% if called April 27, 2010, par plus 47.85% if called Oct. 27, 2010 and par plus 63.80% if called April 25, 2011
|
| Initial share price: | $42.95
|
| Trigger price: | $21.48, 50% of initial share price
|
| Pricing date: | April 27
|
| Settlement date: | April 30
|
| Agents: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1.75%
|
© 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.
