By Angela McDaniels
Tacoma, Wash., Nov. 30 - HSBC USA Inc. priced $5.42 million of 10.5% yield optimization notes with contingent protection due Nov. 30, 2011 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
Each note priced at par of $15.95, which is equal to the closing price of Bank of America stock on the pricing date.
Interest is payable monthly.
If the final share price of Bank of America stock is greater than or equal to 65% of the initial price, the payout at maturity will be par. Otherwise, the payout will be one Bank of America share per note.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying stock: | Bank of America Corp. (NYSE: BAC)
|
| Amount: | $5,421,325
|
| Maturity: | Nov. 30, 2011
|
| Coupon: | 10.5%, payable monthly
|
| Price: | Par of $15.95
|
| Payout at maturity: | If Bank of America shares finish below trigger price, one Bank of America share; otherwise, par
|
| Initial share price: | $15.95
|
| Trigger price: | $10.37, 65% of initial price
|
| Pricing date: | Nov. 25
|
| Settlement date: | Nov. 30
|
| Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 2.76%
|
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