Published on 10/31/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.84 million contingent return optimization notes on S&P
By Jennifer Chiou
New York, Oct. 31 - HSBC USA Inc. priced $8,844,820 of 0% contingent return optimization securities due Oct. 31, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is greater than or equal to the trigger level, 75% of the initial index level, the payout at maturity will be par of $10 plus the greater of 6% and the index return. The payout will be subject to a maximum return of 18.23%.
If the final index level is less than the trigger level, investors will be fully exposed to the decline.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent return optimization securities
|
| Underlying index: | S&P 500
|
| Amount: | $8,844,820
|
| Maturity: | Oct. 31, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final level is at or above trigger level, par plus greater of index return and 6%, return capped at 18.23%; if final level is below trigger level, full exposure to decline from initial level
|
| Initial level: | 1,411.94
|
| Trigger level: | 1,058.96, 75% of initial level
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40433T885
|
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