By Toni Weeks
San Diego, Feb. 7 - HSBC USA Inc. priced $2.8 million of 0% trigger phoenix autocallable optimization securities due Feb. 9, 2015 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes at or above the trigger price - 65% of the initial share price - on any quarterly observation date, the issuer will pay a contingent coupon of 8.32%. Otherwise, no coupon will be paid for that quarter.
If the fund closes at or above the initial price on any observation date after one year, 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. Investors will be exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying fund: | iShares MSCI Emerging Markets index fund
|
| Amount: | $2,798,430
|
| Maturity: | Feb. 9, 2015
|
| Coupon: | 8.32% per year, payable quarterly only if the fund closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
|
| Call: | At par plus contingent coupon if share price at or above initial price on any quarterly observation date beginning Feb. 4, 2013
|
| Initial share price: | $43.89
|
| Trigger price: | $28.53, 65% of initial share price
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 8
|
| Underwriter: | HSBC Securities (USA), with UBS Financial Services Inc. as agent
|
| Fees: | 2.5%
|
| Cusip: | 40433K520
|
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