By Jennifer Chiou
New York, May 30 - HSBC USA Inc. priced $1.98 million of 0% autocallable notes due June 4, 2010 linked to the common stocks of JPMorgan Chase & Co. and Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically if the worst-performing stock closes at or above its initial price on any of eight quarterly auto redemption dates. Investors will receive par plus an annualized return of 21% to the redemption date.
The call dates are Aug. 27, 2008, Nov. 26, 2008, Feb. 25, 2009, May 28, 2009, Aug. 28, 2009, Nov. 27, 2009, Feb. 25, 2010 and May 28, 2010.
If the notes are not called, the payout at maturity will be par if the final price of each stock is greater than or equal to its barrier price - 75% of its initial price. If the final price of the worst-performing stock is less than its barrier price, the payout will be a number of shares of the worst-performing stock equal to par divided by that stock's initial price.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable notes
|
Underlying stocks: | JPMorgan Chase & Co. (Symbol: JPM) and Goldman Sachs Group, Inc. (Symbol: GS)
|
Amount: | $1,978,000
|
Maturity: | June 4, 2010
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | If the final price of the worst-performing stock is less than its barrier price, a number of shares of that stock equal to its exchange ratio; otherwise, par
|
Call: | Automatically if the worst-performing stock closes at or above its initial price on an auto redemption date; payout will be par plus annualized return of 21% to redemption date
|
Initial share prices: | $42.86 for JPMorgan, $174.83 for Goldman Sachs
|
Barrier prices: | $32.145 for JPMorgan, $131.1225 for Goldman Sachs; 75% of initial price
|
Exchange ratios: | 23.3318 for JPMorgan, 5.7198 for Goldman Sachs
|
Pricing date: | May 28
|
Settlement date: | June 4
|
Underwriter: | HSBC Securities (USA) Inc.
|
Fees: | 3.49216%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.