By Angela McDaniels
Tacoma, Wash., Jan. 28 - HSBC USA Inc. priced $6.63 million of 0% barrier optimization securities with partial protection due July 29, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes above the index barrier - 130.47% of the initial level - on any day during the life of the notes, the payout at maturity will be par of $10 plus 3%.
Otherwise, the payout will be:
• Par plus the index return if the final index level is greater than the initial level;
• Par if the index declines by 15% or less; or
• Par minus 1% for every 1% that the index declines beyond 15%.
UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier optimization securities with partial protection
|
| Underlying index: | S&P 500
|
| Amount: | $6,626,000
|
| Maturity: | July 29, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 3% if index ever closes above index barrier; otherwise, par plus any index gain, par if index declines by no more than 15% or par minus 1% for every 1% decline beyond 15%
|
| Initial index level: | 1,092.17
|
| Index barrier: | 1,424.95, 130.47% of initial level
|
| Pricing date: | Jan. 26
|
| Settlement date: | Jan. 29
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 4042EP214
|
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