By Susanna Moon
Chicago, Aug. 30 - HSBC USA Inc. priced $13.23 million of 0% autocallable optimization securities with contingent protection due Sept. 2, 2011 linked to the common stock of Hewlett-Packard Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Hewlett-Packard stock closes at or above the initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 18%.
The payout at maturity will be par if the stock finishes at or above 75% of the initial share price. Otherwise, investors will be fully exposed to the share price decline.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying stock: | Hewlett-Packard Co. (Nasdaq: HPQ)
|
| Amount: | $13,228,500
|
| Maturity: | Sept. 2, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If stock finishes at or above trigger price, par; otherwise, par plus stock return
|
| Call: | Automatically at par plus 18% per year if Hewlett-Packard stock closes at or above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $38.22
|
| Trigger price: | $28.67, or 75% of initial share price
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1.25%
|
| Cusip: | 40432R666
|
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