By Toni Weeks
San Diego, July 31 - HSBC USA Inc. priced $4.76 million of 8.11% trigger yield optimization notes due July 31, 2014 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The face amount of each note will be equal to the initial price of Bank of America stock.
The payout at maturity will be par in cash unless the final price of Bank of America stock is less than 50% of the initial share price, in which case investors will receive one Bank of America share per note.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger yield optimization notes
|
| Underlying stock: | Bank of America Corp. (Symbol: BAC)
|
| Amount: | $4,758,802.69
|
| Maturity: | July 31, 2014
|
| Coupon: | 8.11%, payable monthly
|
| Price: | Par of $7.31
|
| Payout at maturity: | If final share price is less than trigger price, one Bank of America share; otherwise, par
|
| Initial share price: | $7.31
|
| Trigger price: | $3.66, 50% of initial price
|
| Pricing date: | July 27
|
| Settlement date: | July 31
|
| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
|
| Fees: | 2.75%
|
| Cusip: | 40433M377
|
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