By Angela McDaniels
Tacoma, Wash., Dec. 20 - HSBC USA Inc. priced $19.92 million of yield optimization notes with contingent protection due June 22, 2011 linked to the common stock of Monsanto Co., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry an annualized coupon of 9.6%. Interest is payable monthly.
The face amount of each note is $63.00, which is equal to the initial share price of Monsanto stock.
The payout at maturity will be par unless the final price of Monsanto stock is less than 80% of the initial share price, in which case investors will receive one Monsanto share per note.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying stock: | Monsanto Co. (Symbol: MON)
|
| Amount: | $19,920,033
|
| Maturity: | June 22, 2011
|
| Coupon: | 9.6%, payable monthly
|
| Price: | Par of $63.00
|
| Payout at maturity: | If final price of stock is less than trigger price, one Monsanto share per note; otherwise, par
|
| Initial share price: | $63.00
|
| Trigger price: | $50.40, 80% of initial price
|
| Pricing date: | Dec. 16
|
| Settlement date: | Dec. 22
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40432R336
|
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