By Toni Weeks
San Diego, Sept. 30 - HSBC USA Inc. priced $10.18 million of 0% trigger phoenix autocallable optimization securities due Sept. 28, 2012 linked to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes at or above the trigger price - 75% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon of 13.08%. Otherwise, no coupon will be paid for that quarter.
If the fund closes at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. If the shares finish below the trigger price, investors will be exposed to losses.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying fund: | SPDR S&P 500 ETF Trust
|
| Amount: | $10,178,050
|
| Maturity: | Sept. 28, 2012
|
| Coupon: | 13.08% per year, payable quarterly only if fund closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price closes at or above initial price on any quarterly observation date
|
| Initial share price: | $115.16
|
| Trigger price: | $86.37, 75% of initial share price
|
| Pricing date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
|
| Fees: | 1.5%
|
| Cusip: | 40433C395
|
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