By Jennifer Chiou
New York, Oct. 12 - HSBC USA Inc. priced $510,000 of 20% annualized autocallable yield notes due April 13, 2011 linked to the common stock of MGM Resorts International, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If MGM stock closes at or above the initial share price on Jan. 10, 2011, the call observation date, the notes will be called automatically at par plus any accrued interest.
If the notes are not called and the closing price of the stock never falls beyond 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the share price decline, with a cap of par at maturity.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stock: | MGM Resorts International (Symbol: MGM)
|
| Amount: | $510,000
|
| Maturity: | April 13, 2011
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par if share price remains at greater than or equal to the trigger price during life of notes; otherwise, par plus stock return with full exposure to losses
|
| Call: | Automatically at par plus if MGM stock closes at or above initial share price on observation date
|
| Initial share price: | $11.71
|
| Trigger price: | $7.03, 60% of initial share price
|
| Pricing date: | Oct. 7
|
| Settlement date: | Oct. 13
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 4042K06T7
|
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