By Angela McDaniels
Tacoma, Wash., Aug. 18 - HSBC USA Inc. priced $7.05 million of 9.76% annualized yield optimization notes with contingent protection due Feb. 19, 2010 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
Each note priced at par of $42.03, which is equal to the closing price of Target stock on the pricing date.
Interest is payable quarterly.
If the final share price of Target stock is greater than or equal to 75% of the initial price, the payout at maturity will be par. Otherwise, the payout will be one Target share per note.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying stock: | Target Corp. (NYSE: TGT)
|
| Amount: | $7,049,944
|
| Maturity: | Feb. 19, 2010
|
| Coupon: | 9.76%, payable quarterly
|
| Price: | Par of $42.03
|
| Payout at maturity: | If Target shares finish below trigger price, one Target share; otherwise, par
|
| Initial share price: | $42.03
|
| Trigger price: | $31.52, 75% of initial price
|
| Pricing date: | Aug. 14
|
| Settlement date: | Aug. 19
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 1%
|
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