By Jennifer Chiou
New York, July 30 - HSBC USA Inc. priced $29.14 million of 0% autocallable optimization securities with contingent protection due Aug. 3, 2010 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes above its initial share price on any of 12 monthly observation dates, the notes will be called and investors will receive par of $10 plus an annualized return of 17.7%. The first and last observation dates are Aug. 25, 2009 and July 29, 2010, respectively.
If the notes are not called, the payout at maturity will be par if the final share price is at least 75% of the initial price. Otherwise, investors will receive par plus the share price return.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying fund: | Energy Select Sector SPDR fund
|
| Amount: | $29,140,710
|
| Maturity: | Aug. 3, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par if final share price is at least equal to the trigger price; otherwise, par plus the fund return
|
| Call option: | At par plus annualized return of 17.7% if fund closes above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $50.60
|
| Trigger price: | $37.95, 75% of initial price
|
| Pricing date: | July 28
|
| Settlement date: | July 31
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1.25%
|
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