By Susanna Moon
Chicago, Oct. 30 - HSBC USA Inc. priced $6.28 million of 9.65% annualized yield optimization notes with contingent protection due Oct. 31, 2011 linked to the common stock of El Paso Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each note priced at par of $10.00, which was the closing price of El Paso stock at pricing.
Interest is payable quarterly.
If El Paso stock finishes at or above 70% of the initial price, the payout at maturity will be par. Otherwise, investors will receive one El Paso share per note.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
Issuer: | HSBC USA Inc.
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Issue: | Yield optimization notes with contingent protection
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Underlying stock: | El Paso Corp. (NYSE: EP)
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Amount: | $6,277,670
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Maturity: | Oct. 31, 2011
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Coupon: | 9.65%, payable quarterly
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Price: | Par of $10.00
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Payout at maturity: | If El Paso shares finish below the trigger price, one El Paso share per note; otherwise, par
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Initial share price: | $10.00
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Trigger price: | $7.00, 70% of initial price
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Pricing date: | Oct. 28
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Settlement date: | Oct. 30
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Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
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Fees: | 2.75%
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