Published on 2/28/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $215,000 annual income opportunity notes tied to 10 stocks
By Marisa Wong
Madison, Wis., Feb. 28 - HSBC USA Inc. priced $215,000 of annual income opportunity notes with auto cap due March 2, 2015 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Dow Chemical Co., Eli Lilly and Co., Freeport-McMoRan Copper & Gold Inc., Goldcorp, Inc., Kraft Foods Inc., McDonald's Corp., Paychex, Inc., Raytheon Co., Reynolds American Inc. and Verizon Communications Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum of zero.
A stock's performance will be equal to the auto cap rate, 5.5%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 25%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Annual income opportunity notes with auto cap
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| Underlying stocks: | Dow Chemical Co. (NYSE: DOW), Eli Lilly and Co. (NYSE: LLY), Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Goldcorp, Inc. (NYSE: GG), Kraft Foods Inc. (NYSE: KFT), McDonald's Corp. (NYSE: MCD), Paychex, Inc. (Nasdaq: PAYX), Raytheon Co. (NYSE: RTN), Reynolds American Inc. (NYSE: RAI) and Verizon Communications Inc. (NYSE: VZ)
|
| Amount: | $215,000
|
| Maturity: | March 2, 2015
|
| Coupon: | Average of the performances of the basket stocks, subject to a minimum rate of 0%; payable annually
|
| Stock performance: | If stock's return is greater than or equal to zero, 5.5%; otherwise, greater of stock return and negative 25%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial prices: | $33.86 for Dow, $38.79 for Eli Lilly, $43.78 for Freeport-McMoRan, $49.48 for Goldcorp, $37.98 for Kraft, $100.81 for McDonald's, $31.32 for Paychex, $50.36 for Raytheon, $40.65 for Reynolds, $38.13 for Verizon
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.75%
|
| Cusip: | 4042K1WX7
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