By Angela McDaniels
Tacoma, Wash., Feb. 29 - HSBC USA Inc. priced $5.19 million of 0% trigger autocallable optimization securities due Feb. 28, 2017 linked to the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the closing share price on any quarterly observation date is greater than or equal to the initial share price, the notes will be called at par of $10 plus a call return of 8.92% per year. The first observation date is Feb. 28, 2013.
If the notes are not called and the final share price is greater than or equal to 70% of the initial share price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the share price decline.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable optimization securities
|
| Underlying ETF: | SPDR S&P 500 ETF trust
|
| Amount: | $5,190,450
|
| Maturity: | Feb. 28, 2017
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is at least 70% of initial share price, par; otherwise, full exposure to share price decline
|
| Call: | Automatically at par plus 8.92% per year if shares close at or above initial share price on any quarterly observation date; first observation date is Feb. 28, 2013
|
| Initial share price: | $137.16
|
| Trigger level: | $96.01, 70% of initial share price
|
| Pricing date: | Feb. 27
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| Settlement date: | Feb. 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40433K454
|
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