By Angela McDaniels
Tacoma, Wash., March 30 - HSBC USA Inc. priced $10.25 million of 0% trigger return optimization securities due March 31, 2014 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares MSCI Emerging Markets index fund with a 40% weight, the iShares MSCI EAFE index fund with a 30% weight and the SPDR Trust, series 1 with a 30% weight.
If the basket return is positive, the payout at maturity will be par of $10 plus double the basket gain, subject to a maximum return of 40.8%.
If the final basket level is 75% to 100% of the basket level, the payout will be par.
Otherwise, the payout will be par plus the basket return.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger return optimization securities
|
| Underlying ETFs: | iShares MSCI Emerging Markets index fund (40% weight), iShares MSCI EAFE index fund (30% weight) and SPDR Trust, series 1 (30% weight)
|
| Amount: | $10,246,620
|
| Maturity: | March 31, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus double any basket gain, up to maximum return of 40.8%; if final basket level is 75% to 100% of initial level, par; otherwise, par plus basket return
|
| Initial prices: | $47.08 for iShares MSCI Emerging Markets; $59.35 for iShares MSCI EAFE; $130.94 for SPDR
|
| Pricing date: | March 28
|
| Settlement date: | March 31
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40433C304
|
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