By Angela McDaniels
Tacoma, Wash., Oct. 31 - HSBC USA Inc. priced an additional $3.5 million principal amount of 0% Elements exchange-traded notes due June 16, 2023 linked to the S&P Commodity Trends Indicator - Total Return, according to a 424B2 filing with the Securities and Exchange Commission.
The notes priced at 72.3.
In June 2008, the company said it would sell up to $250 million of the Elements. Since then, it has sold $107.9 million of notes in 42 tranches at prices ranging from 72.3 to 120.4.
The payout at maturity will be par of $10 plus the index return minus an investor fee of 0.75% per year.
The notes are putable at any time, subject to a minimum principal amount of $2.5 million, and the issuer can call the notes beginning June 16, 2011 if $5 million principal amount or less remains outstanding. In both cases, the payout will be determined in the same way as the payout at maturity.
The notes are listed on NYSE Arca under the symbol "LSC."
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Elements exchange-traded notes
|
| Underlying index: | S&P Commodity Trends Indicator - Total Return
|
| Amount: | $107.9 million, increased from $2 million
|
| Maturity: | June 16, 2023
|
| Coupon: | 0%
|
| Price: | 113.1 for original $2 million; 72.3 for latest $3.5 million
|
| Payout at maturity: | Par of $10 plus the index return minus an investor fee of 0.75% per year
|
| Put option: | At any time, subject to a minimum of $2.5 million
|
| Call option: | From June 16, 2011 onward if $5 million of notes or less remains outstanding
|
| Pricing dates: | Nov. 20, 2008 for original $2 million; Oct. 26 for latest $3.5 million
|
| Settlement dates: | Nov. 25, 2008 for original $2 million; Oct. 31 for latest $3.5 million
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Listing: | NYSE Arca: LSC
|
| Cusip: | 4042EP602
|
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