By Jennifer Chiou
New York, July 31 - HSBC USA Inc. priced $4.57 million of 10.35% yield optimization notes with contingent protection due July 29, 2011 linked to the iShares FTSE/Xinhua China 25 index fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each note has a face value of $41.26, equal to the closing share price of the exchange-traded fund on the pricing date.
Interest is payable monthly.
If the final share price of the fund is less than 75% of the initial price, the payout at maturity will be one fund share per note. Otherwise, the payout will be par.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying ETF: | iShares FTSE/Xinhua China 25 index fund
|
| Amount: | $4,572,268
|
| Maturity: | July 29, 2011
|
| Coupon: | 10.35%, payable monthly
|
| Price: | Par of $41.26
|
| Payout at maturity: | If fund finishes below trigger price, one fund share per note; otherwise, par
|
| Initial share price: | $41.26
|
| Trigger price: | $30.95, 75% of initial price
|
| Pricing date: | July 29
|
| Settlement date: | July 31
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 2.8%
|
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