By Jennifer Chiou
New York, Sept. 24 - HSBC USA Inc. priced $21.88 million of 12% autocallable notes due Oct. 4, 2011 linked to the common stock of Bank of America Corp., according to a 424B2 with the Securities and ExchanBank of America Commission.
Interest is payable monthly.
If the share price closes at or above the initial share price of any of the quarterly observation dates, the notes will be automatically called and investors will receive par.
The observation dates are Dec. 22, 2010, March 22, 2011, June 22, 2011 and Sept. 29, 2011.
If the notes are not called and the final share price is at or above 75% of the initial price, the payout at maturity will be par. If the final share price is less than 75% of the initial price, investors will receive a cash value equal to $1,000 divided by the initial share price times the final share price.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying stock: | Bank of America Corp. (Symbol: BAC)
|
| Amount: | $21.88 million
|
| Maturity: | Oct. 4, 2011
|
| Coupon: | 12%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par if final share price is at least 75% of initial price; otherwise, cash value of par plus the return
|
| Call: | At par if share price closes at or above initial level on Dec. 22, 2010, March 22, 2011, June 22, 2011 or Sept. 29, 2011
|
| Initial share price: | $13.42
|
| Barrier price: | $10.07, 75% of initial price
|
| Pricing date: | Sept. 22
|
| Settlement date: | Sept. 27
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1.35%
|
| Cusip: | 4042K05W1
|
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