Published on 7/2/2010 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.89 million knock-out notes on 15 stocks via JPMorgan
By Susanna Moon
Chicago, July 2 - HSBC USA Inc. priced $2.89 million of 0% knock-out buffer notes due Jan. 11, 2012 linked to a basket of 15 equally weighted stocks, according to a 424 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
The underlying companies are Yum! Brands, Inc., Coca-Cola Co., PepsiCo, Inc., Colgate-Palmolive Co., Phillip Morris International Inc., Wynn Resorts, Ltd., Las Vegas Sands Corp., Starwood Hotels & Resorts Worldwide, Inc., Mead Johnson Nutrition Co., Broadcom Corp., Marvell Technology Group Ltd., Applied Materials, Inc., Boeing Co., Mylan Inc. and FedEx Corp.
A knock-out event occurs if the index ever dips by more than the 17.5% buffer during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return, with exposure to any losses.
If a knock-out event does not occur, the payout will be par plus any index gain, with a minimum payout of par.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying companies: | Yum! Brands, Inc., Coca-Cola Co., PepsiCo, Inc., Colgate-Palmolive Co., Phillip Morris International Inc., Wynn Resorts, Ltd., Las Vegas Sands Corp., Starwood Hotels & Resorts Worldwide, Inc., Mead Johnson Nutrition Co., Broadcom Corp., Marvell Technology Group Ltd., Applied Materials, Inc., Boeing Co., Mylan Inc. and FedEx Corp.
|
| Amount: | $2.89 million
|
| Maturity: | Jan. 11, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index falls by more than 17.5% during life of notes, par plus index return with exposure to losses; otherwise, par plus index gain, floor of par
|
| Initial level: | $39.04 for Yum! Brands, $50.12 for Coca-Cola, $60.95 for PepsiCo, $78.76 for Colgate-Palmolive, $45.84 for Phillip Morris, $76.27 for Wynn Resorts, $22.14 for Las Vegas Sands, $41.43 for Starwood, $50.12 for Mead Johnson, $32.97 for Broadcom, $15.76 for Marvell, $12.02 for Applied Materials, $62.75 for Boeing, $17.04 for Mylan and $70.11 for FedEx
|
| Pricing date: | June 30
|
| Settlement date: | July 6
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1.25%
|
| Cusip: | 4042K03E3
|
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