Published on 8/14/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.45 million annual income opportunity notes on 10 stocks
By Toni Weeks
San Diego, Aug. 14 - HSBC USA, Inc. priced $6.45 million of annual income opportunity notes due Aug. 17, 2017 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.
The basket includes Amgen Inc., Applied Materials, Inc., Exelon Corp., General Electric Co., Intel Corp., Lorillard, Inc., PepsiCo, Inc., Pfizer Inc., Procter & Gamble Co. and Time Warner Cable Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum interest rate of 0.5% per year.
A stock's performance will be equal to the 4.75% auto cap rate if its return is greater than or equal to zero. If a stock's return is less than zero, its performance will be the greater of its return and negative 30%.
The payout at maturity will be par plus the last coupon payment.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Annual income opportunity notes with auto cap
|
| Underlying stocks: | Amgen Inc., Applied Materials, Inc., Exelon Corp., General Electric Co., Intel Corp., Lorillard, Inc., PepsiCo, Inc., Pfizer Inc., Procter & Gamble Co. and Time Warner Cable Inc.
|
| Amount: | $6,448,000
|
| Maturity: | Aug. 17, 2017
|
| Coupon: | Average of the performances of the basket stocks, subject to a minimum interest rate of 0.5%; payable annually
|
| Stock performance: | If stock's return is greater than or equal to zero, 4.75%; otherwise, greater of stock return and negative 30%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | Aug. 10
|
| Settlement date: | Aug. 17
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 4042K1T52
|
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