Published on 9/29/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $108,000 annual income opportunity securities on 12 stocks
By Marisa Wong
Madison, Wis., Sept. 29 - HSBC USA Inc. priced $108,000 of annual income opportunity securities with auto cap due Oct. 2, 2014 linked to a basket of 12 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common shares of Alpha Natural Resources, Inc., AT&T Inc., El Paso Corp., Ford Motor Co., Freeport-McMoRan Copper & Gold Inc., Gap, Inc., Las Vegas Sands Corp., Nvidia Corp., Pfizer Inc., Salesforce.com, Inc., Time Warner Inc. and Xerox Corp.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.
If the return of a stock is zero or positive, its performance will equal 5%. Otherwise, its performance will be the greater of the 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: | Alpha Natural Resources, Inc. (NYSE: ANR), AT&T Inc. (NYSE: T), El Paso Corp. (NYSE: EP), Ford Motor Co. (NYSE: F), Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Gap, Inc. (NYSE: GPS), Las Vegas Sands Corp. (NYSE: LVS), Nvidia Corp. (Nasdaq: NVDA), Pfizer Inc. (NYSE: PFE), Salesforce.com, Inc. (NYSE: CRM), Time Warner Inc. (NYSE: TWX) and Xerox Corp. (NYSE: XRX)
|
| Amount: | $108,000
|
| Maturity: | Oct. 2, 2014
|
| Coupon: | The average of the performances of the basket stocks, subject to a floor of zero; if the return of a stock is zero or positive, its performance will be 5%; otherwise, its performance will be the greater of its return and negative 30%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial prices: | $21.26 for Alpha, $28.67 for AT&T, $18.06 for El Paso, $10.12 for Ford, $34.82 for Freeport, $17.23 for Gap, $44.69 for Las Vegas, $13.84 for Nvidia, $17.75 for Pfizer, $124.75 for Salesforce, $31.72 for Time, $7.57 for Xerox
|
| Pricing date: | Sept. 27
|
| Settlement date: | Sept. 30
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
|
| Cusip: | 4042K1NJ8
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