Published on 5/3/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $13.79 million five-year annual income opportunity notes on 10 stocks
By Toni Weeks
San Diego, May 3 - HSBC USA Inc. priced $13.79 million of annual income opportunity securities with auto cap due May 6, 2016 linked to a basket of 10 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Barrick Gold Corp., International Paper Co., Archer-Daniels-Midland Co., the Mosaic Co., Cameco Corp., Schlumberger Ltd., El Paso Corp., Transocean Ltd., Freeport-McMoRan Copper & Gold Inc. and Weyerhaeuser Co.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of 0.5%.
If a basket stock's return is zero or positive, its performance will be fixed at 7.5%. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Annual income opportunity securities with auto cap
|
| Underlying stocks: | Barrick Gold Corp. (Symbol: ABX), International Paper Co. (Symbol: IP), Archer-Daniels-Midland Co. (Symbol: ADM), the Mosaic Co., (Symbol: MOS), Cameco Corp. (Symbol: CCJ), Schlumberger Ltd., (Symbol: SLB), El Paso Corp. (Symbol: EP), Transocean Ltd. (Symbol: RIG), Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX), Weyerhaeuser Co. (Symbol: WY)
|
| Amount: | $13,793,000
|
| Maturity: | May 6, 2016
|
| Coupon: | Average of performances of basket stocks, subject to floor of 0.5%; for each stock, if return is zero or positive, performance fixed at 7.5%, if return is negative, performance is greater of stock return and negative 30%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial prices: | $51.01 for Barrick, $30.88 for International Paper, $37.02 for Archer-Daniels-Midland, $74.86 for Mosaic, $29.48 for Cameco, $89.75 for Schlumberger, $19.41 for El Paso, $72.75 for Transocean, $55.03 for Freeport-McMoRan, $23.01 for Weyerhaeuser
|
| Pricing date: | April 29
|
| Settlement date: | May 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 4042K1GP2
|
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