Published on 11/30/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $171,000 annual income opportunity notes linked to 10 industry titans
By Marisa Wong
Madison, Wis., Nov. 30 - HSBC USA Inc. priced $171,000 of annual income opportunity notes with auto cap due Dec. 2, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Altria Group, Inc., Amgen Inc., Apple Inc., AT&T Inc., Exelon Corp., Maxim Integrated Products, Inc., Monsanto Co., Pfizer Inc., Silver Wheaton Corp. and Wells Fargo & Co.
Interest is payable annually and will equal the average of the performances of the basket stocks, with a minimum coupon of 0.5%.
A stock's performance will be equal to the 7% 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 25%.
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: | Altria Group, Inc. (NYSE: MO), Amgen Inc. (Nasdaq: AMGN), Apple Inc. (Nasdaq: AAPL), AT&T Inc. (NYSE: T), Exelon Corp. (NYSE: EXC), Maxim Integrated Products, Inc. (Nasdaq: MXIM), Monsanto Co. (NYSE: MON), Pfizer Inc. (NYSE: PFE), Silver Wheaton Corp. (NYSE: SLW) and Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $171,000
|
| Maturity: | Dec. 2, 2019
|
| Coupon: | Average of the performances of basket stocks, subject to a minimum interest rate of 0.5%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Stock performance: | If stock's return is greater than or equal to zero, 7%; otherwise, greater of stock return and negative 25%
|
| Initial prices: | $33.15 for Altria, $86.98 for Amgen, $584.89 for Apple, $33.62 for AT&T, $29.76 for Exelon, $28.30 for Maxim, $90.81 for Monsanto, $24.25 for Pfizer, $36.63 for Silver Wheaton and $32.63 for Wells Fargo
|
| Pricing date: | Nov. 27
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| Settlement date: | Nov. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4.25%
|
| Cusip: | 4042K17L1
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