By Jennifer Chiou
New York, Feb. 26 - HSBC USA Inc. priced $12.31 million of 10.15% yield optimization notes with contingent protection due Feb. 28, 2011 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each note priced at par of $72.68, which is equal to the closing price of Freeport-McMoRan stock on the pricing date.
Interest is payable monthly.
If the final share price of Freeport-McMoRan stock is greater than or equal to 70% of the initial price, the payout at maturity will be par. Otherwise, the payout will be one Freeport-McMoRan share per note.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
|
| Amount: | $12,307,994.60
|
| Maturity: | Feb. 28, 2011
|
| Coupon: | 10.15%, payable monthly
|
| Price: | Par of $72.68
|
| Payout at maturity: | If Freeport-McMoRan shares finish below trigger price, one Freeport-McMoRan share; otherwise, par
|
| Initial share price: | $72.68
|
| Trigger price: | $50.88, 70% of initial price
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 26
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 0.2%
|
| Cusip: | 4042EP164
|
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