Published on 12/28/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.07 million annual income opportunity notes linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., Dec. 28 - HSBC USA Inc. priced $1.07 million of annual income opportunity notes with auto cap due Dec. 31, 2018 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 equals the average of the performances of the basket stocks, subject to a minimum interest rate of 1%.
A stock's performance will be equal to the auto cap rate if its return is greater than or equal to zero. The auto cap rate is 10%. If a stock's return is less than zero, 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: | Head start annual income opportunity notes with auto cap
|
| Underlying stocks: | 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.
|
| Amount: | $1,066,000
|
| Maturity: | Dec. 31, 2018
|
| Coupon: | Average of the performances of the basket stocks, subject to a minimum interest rate of 1%; payable annually
|
| Stock performance: | If stock's return is greater than or equal to zero, 10%; otherwise, greater of stock return and negative 30%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial share prices: | $29.84 for Altria; $177.28 for Amazon.com; $63.70 for Amgen; $29.06 for ADM; $29.87 for AT&T; $46.02 for Barrick Gold; $40.57 for General Mills; $33.80 for Halliburton; $24.37 for Intel; $28.14 for Mattel
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 5%
|
| Cusip: | 4042K1UD3
|
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