By Angela McDaniels
Tacoma, Wash., Aug. 18 - HSBC USA Inc. priced $2.95 million of 8.5% annualized yield optimization notes with contingent protection due Feb. 19, 2010 linked to the common stock of Union Pacific 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 $60.82, which is equal to the closing price of Union Pacific stock on the pricing date.
Interest is payable quarterly.
If the final share price of Union Pacific stock is greater than or equal to 75% of the initial price, the payout at maturity will be par. Otherwise, the payout will be one Union Pacific share per note.
Issuer: | HSBC USA Inc.
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Issue: | Yield optimization notes with contingent protection
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Underlying stock: | Union Pacific Corp. (NYSE: UNP)
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Amount: | $2,949,831
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Maturity: | Feb. 19, 2010
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Coupon: | 8.5%, payable quarterly
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Price: | Par of $60.82
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Payout at maturity: | If Union Pacific shares finish below trigger price, one Union Pacific share; otherwise, par
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Initial share price: | $60.82
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Trigger price: | $45.62, 75% of initial price
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Pricing date: | Aug. 14
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Settlement date: | Aug. 19
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Underwriters: | UBS Financial Services Inc. and HSBC USA Inc.
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Fees: | 1%
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