By Susanna Moon
Chicago, May 25 - HSBC USA Inc. priced $83.87 million of 13.15% annualized yield optimization notes with contingent protection due May 31, 2011 based on General Electric Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Each note priced at par of $16.42, which was the closing price of General Electric stock at pricing.
Interest is payable quarterly.
If General Electric stock finishes at or above 75% of the initial price, the payout at maturity will be par. Otherwise, investors will receive one General Electric share per note.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying stock: | General Electric Co. (NYSE: GE)
|
| Amount: | $83,874,788.54
|
| Maturity: | May 31, 2011
|
| Coupon: | 13.15%, payable quarterly
|
| Price: | Par of $16.42
|
| Payout at maturity: | If General Electric shares finish below the trigger price, one General Electric | share per note; otherwise, par
|
| Initial share price: | $16.42
|
| Trigger price: | $12.32, or 75% of initial price
|
| Pricing date: | May 21
|
| Settlement date: | May 28
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40432R807
|
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