By Susanna Moon
Chicago, Oct. 29 - HSBC USA Inc. priced $15.29 million of 0% return optimization securities with contingent protection due Jan. 30, 2015 based on a basket of three funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR Trust Series 1 with a 30% weight, the iShares MSCI EAFE index fund with a 30% weight and the iShares MSCI Emerging Markets index fund with a 40% weight.
The payout at maturity will be par of $10 plus 2.5 times any basket gain, up to a maximum return of 62.51%.
Investors will receive par if the basket falls by up to 30% and will lose 1% for each 1% decline beyond 30%.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Return optimization securities with contingent protection
|
| Underlying basket: | SPDR Trust Series 1 (30% weight), iShares MSCI EAFE index fund (30% weight) and the iShares MSCI Emerging Markets index fund (40% weight)
|
| Amount: | $15,289,400
|
| Maturity: | Jan. 30, 2015
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 250% of any basket gain, capped at 62.51%; 1% loss for each 1% drop beyond 30%
|
| Initial levels: | $118.38 for SPDR, $56.59 for MSCI EAFE and $45.70 for MSCI EM
|
| Pricing date: | Oct. 27
|
| Settlement date: | Oct. 29
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 3.125%
|
| Cusip: | 40432R575
|
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