By Susanna Moon
Chicago, Oct. 30 - HSBC USA Inc. priced $7.34 million of 9.05% annualized yield optimization notes with contingent protection due Oct. 31, 2011 linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each note priced at par of $42.68, which was the closing price of JPMorgan stock at pricing.
Interest is payable quarterly.
If JPMorgan stock finishes at or above 75% of the initial price, the payout at maturity will be par. Otherwise, investors will receive one JPMorgan 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: | JPMorgan Chase & Co. (NYSE: JPM)
|
| Amount: | $7,336,393.24
|
| Maturity: | Oct. 31, 2011
|
| Coupon: | 9.05%, payable quarterly
|
| Price: | Par of $42.68
|
| Payout at maturity: | If JPMorgan shares finish below the trigger price, one JPMorgan share per note; otherwise, par
|
| Initial share price: | $42.68
|
| Trigger price: | $32.01, 75% of initial price
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 30
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 2.75%
|
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