Published on 6/26/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $680,000 annual income opportunity notes linked to 10 industry titans
By Toni Weeks
San Luis Obispo, Calif., June 26 - HSBC USA Inc. priced $680,000 of annual income opportunity notes with auto cap due June 29, 2020 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Consolidated Edison, Inc., Darden Restaurants, Inc., Exelon Corp., Goldcorp Inc., Lorillard, Inc., Mattel, Inc., Nvidia Corp., Southern Co., Verizon Communications Inc. and Waste Management, Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks, with a minimum coupon of 1%.
A stock's performance will be equal to the 8% 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 15%.
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: | Consolidated Edison, Inc. (NYSE: ED), Darden Restaurants, Inc. (NYSE: DRI), Exelon Corp. (NYSE: EXC), Goldcorp Inc. (NYSE: GG), Lorillard, Inc. (NYSE: LO), Mattel, Inc. (Nasdaq: MAT), Nvidia Corp. (Nasdaq: NVDA), Southern Co. (NYSE: SO), Verizon Communications Inc. (NYSE: VZ) and Waste Management, Inc. (NYSE: WM)
|
| Amount: | $680,000
|
| Maturity: | June 29, 2020
|
| Coupon: | Average of the performances of basket stocks, subject to a minimum interest rate of 1%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Stock performance: | If stock's return is greater than or equal to zero, 8%; otherwise, greater of stock return and negative 15%
|
| Initial prices: | $56.29 for Consolidated Edison, Inc., $49.03 for Darden Restaurants, Inc., $30.62 for Exelon Corp., $23.58 for Goldcorp Inc., $43.39 for Lorillard, Inc., $43.92 for Mattel, Inc., $14.12 for Nvidia Corp., $42.94 for Southern Co., $49.12 for Verizon Communications Inc. and $39.04 for Waste Management, Inc.
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| Pricing date: | June 24
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| Settlement date: | June 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4.35%
|
| Cusip: | 40432XGK1
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