Published on 11/17/2010 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3 million annual income opportunity securities linked to 12 stocks
By Marisa Wong
Madison, Wis., Nov. 17 - HSBC USA Inc. priced $3 million of annual income opportunity securities with auto cap due Nov. 19, 2015 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Alcoa, Inc., Altria Group, Inc., CenturyLink, Inc., Consolidated Edison Inc., Gilead Sciences Inc., General Mills, Inc., Intel Corp., Mosaic Co., Pfizer Inc., Schlumberger Ltd., U.S. Bancorp and YUM! Brands, Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of 0.5%.
If a basket stock's return is zero or positive, its performance will be fixed at 6%. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Annual income opportunity securities with auto cap
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| Underlying stocks: | Alcoa, Inc., Altria Group, Inc., CenturyLink, Inc., Consolidated Edison Inc., Gilead Sciences Inc., General Mills, Inc., Intel Corp., Mosaic Co., Pfizer Inc., Schlumberger Ltd., U.S. Bancorp and YUM! Brands, Inc.
|
| Amount: | $3 million
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| Maturity: | Nov. 19, 2015
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| Coupon: | The average of the performances of the basket stocks, subject to a floor of 0.5%; if a stock's return is zero or positive, its performance will be 6%; otherwise, its performance will be the greater of its return and negative 30%; payable annually
|
| Price: | Par
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| Payout at maturity: | Par
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| Pricing date: | Nov. 15
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| Settlement date: | Nov. 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 4042K1AL7
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