By Jennifer Chiou
New York, July 31 - HSBC USA Inc. priced $6.16 million of 10.15% yield optimization notes with contingent protection due July 29, 2011 linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and HSBC USA Inc. are the agents.
Each note priced at par of $37.77, which is equal to the closing price of JPMorgan stock on the pricing date.
Interest is payable monthly.
If the final share price of JPMorgan 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 JPMorgan share per note.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying stock: | JPMorgan Chase & Co. (Symbol: JPMorgan)
|
| Amount: | $6,159,003
|
| Maturity: | July 29, 2011
|
| Coupon: | 10.15%, payable monthly
|
| Price: | Par of $37.77
|
| Payout at maturity: | If JPMorgan shares finish below trigger price, one JPMorgan share; otherwise, par
|
| Initial share price: | $37.77
|
| Trigger price: | $26.44, 70% of initial price
|
| Pricing date: | July 29
|
| Settlement date: | July 31
|
| Agents: | UBS Financial Services Inc. and HSBC USA Inc.
|
| Fees: | 2.75%
|
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