Published on 10/26/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.74 million four-year annual income opportunity notes on 10 stocks
By Marisa Wong
Madison, Wis., Oct. 26 - HSBC USA Inc. priced $1.74 million of annual income opportunity securities with auto cap due Oct. 27, 2015 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels-Midland Co., AT&T Inc., Barrick Gold Corp., General Mills, Inc., Halliburton Co., Intel Corp. and Mattel, Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum interest rate of 0%.
A stock's performance will be equal to an auto cap rate of 7% if its return is zero or positive. If a stock's return is negative, its performance will be the greater of its return and negative 30%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Annual income opportunity securities with auto cap
|
| Underlying stocks: | Altria Group, Inc. (NYSE: MO), Amazon.com, Inc. (Nasdaq: AMZN), Amgen Inc. (Nasdaq: AMGN), Archer-Daniels-Midland Co. (NYSE: ADM), AT&T Inc. (NYSE: T), Barrick Gold Corp. (NYSE: ABX), General Mills, Inc. (NYSE: GIS), Halliburton Co. (NYSE: HAL), Intel Corp. (Nasdaq: INTC) and Mattel, Inc. (Nasdaq: MAT); equally weighted
|
| Amount: | $1.74 million
|
| Maturity: | Oct. 27, 2015
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| Coupon: | Average of performances of basket stocks, subject to floor of 0%; basket stock performance is 7% if return is zero or positive and greater of return and negative 30% if return is negative; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
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| Initial prices: | $27.31 for Altria, $237.61 for Amazon, $58.95 for Amgen, $28.94 for Archer-Daniels, $28.88 for AT&T, $46.28 for Barrick, $39.10 for General Mills, $35.32 for Halliburton, $24.59 for Intel, $28.26 for Mattel
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 5%
|
| Cusip: | 4042K1PW7
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