By Angela McDaniels
Tacoma, Wash., Sept. 12 - HSBC USA Inc. priced $2.5 million of notes due March 13, 2012 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry a coupon of 16.6% per year. Interest is payable quarterly.
If Freeport-McMoRan stock falls below 70% of its initial level at any time on any day during the life of the notes and the final share price is less than the initial share price, the payout at maturity will be a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price. Otherwise, the payout will be par in cash.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Notes
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
|
| Amount: | $2.5 million
|
| Maturity: | March 13, 2012
|
| Coupon: | 16.6%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Freeport-McMoRan stock falls below trigger price at any time during life of notes and finishes below initial share price, 25.58866 Freeport-McMoRan shares; otherwise, par in cash
|
| Initial share price: | $44.27
|
| Trigger price: | $30.99, 70% of initial share price
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 13
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 4042K1NP4
|
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