By Angela McDaniels
Tacoma, Wash., May 17 - HSBC USA Inc. priced $11.25 million of 10.3% trigger yield optimization notes due May 18, 2012 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The face amount of each note is $48.27, which is equal to the initial share price of Freeport-McMoRan.
The payout at maturity will be par unless the final price of Freeport-McMoRan stock is less than 75% of the initial share price, in which case investors will receive one Freeport-McMoRan share per note.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger yield optimization notes
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
|
| Amount: | $11,250,868.14
|
| Maturity: | May 18, 2012
|
| Coupon: | 10.3%, payable monthly
|
| Price: | Par of $48.27
|
| Payout at maturity: | If final price of Freeport-McMoRan stock is less than trigger price, one Freeport-McMoRan share; otherwise, par
|
| Initial share price: | $48.27
|
| Trigger price: | $36.20, 75% of initial share price
|
| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40433C817
|
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