By Angela McDaniels
Tacoma, Wash., Jan. 24 - HSBC USA Inc. priced $2.36 million of 0% twin participation notes due July 25, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A trigger event occurs if the index closes below 70% of the initial level on any day during the life of the notes.
If a trigger event has not occurred and the final index level is greater than the initial level, the payout at maturity will be par plus the index gain, subject to a maximum return of 19.5%.
If a trigger event has not occurred and the final level is less than or equal to the initial level, the payout at maturity will be par plus the absolute value of the index return.
If a trigger event has occurred, investors will receive par plus the lesser of the index return and 19.5%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Twin participation notes
|
| Underlying index: | S&P 500
|
| Amount: | $2.36 million
|
| Maturity: | July 25, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If trigger event occurs, par plus lesser of index return and 19.5%; if trigger event does not occur and final index level is greater than initial level, par plus lesser of index return and 19.5%; if trigger event does not occur and final level is less than or equal to initial level, par plus absolute value of index return
|
| Trigger event: | Index closes below 920.77, 70% of initial level, on any day during life of notes
|
| Initial index level: | 1,315.38
|
| Pricing date: | Jan. 20
|
| Settlement date: | Jan. 25
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 4042K1VL4
|
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