Published on 8/30/2010 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $654,000 auto cap annual income opportunity securities linked to 12 stocks
By Jennifer Chiou
New York, Aug. 30 - HSBC USA Inc. priced $654,000 of annual income opportunity securities with auto cap due Aug. 29, 2013 linked to a basket of 12 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Amgen Inc. and Ebay Inc., the class B common stock of Nike Inc. and the American Depositary Shares of Astrazeneca plc, Barrick Gold Corp., Credit Suisse Group Corp., Petrochina Co. Ltd., Research In Motion Ltd., SAP AG, Sony Corp., UBS AG and Vodafone Group plc.
Interest is payable annually in August and will equal the average of the performances of the basket stocks, subject to a floor of zero.
If a basket stock's return is zero or positive, its performance will be fixed at 5%. If a basket stock's return is negative, its performance will be the greater of the stock 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: | Amgen Inc., Ebay Inc., class B common stock of Nike Inc., American Depositary Shares of Astrazeneca plc, Barrick Gold Corp., Credit Suisse Group Corp., Petrochina Co. Ltd., Research In Motion Ltd., SAP AG, Sony Corp., UBS AG and Vodafone Group plc
|
| Amount: | $654,000
|
| Maturity: | Aug. 29, 2013
|
| Coupon: | The average of the performances of the basket stocks, subject to a floor of 0%; if the return of stock is 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
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.75%
|
| Cusip: | 4042K04U6
|
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