Published on 11/29/2010 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.83 million 10.55% yield optimization notes on Arch Coal
By Jennifer Chiou
New York, Nov. 29 - HSBC USA Inc. priced $1.83 million of 10.55% yield optimization notes with contingent protection due Nov. 30, 2012 linked to Arch Coal, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Each note has a face value of $29.89, which was the closing price of Arch Coal stock at pricing.
The payout at maturity will be par unless the stock finishes at or below 75% of the initial share price, in which case the payout will be one share of Arch Coal stock per note.
UBS Financial Services Inc. and HSBC USA Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Yield optimization notes with contingent protection
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Underlying stock: | Arch Coal, Inc. (Symbol: ACI)
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Amount: | $1,825,083
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Maturity: | Nov. 30, 2012
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Coupon: | 10.55%, payable monthly
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Price: | Par of $29.89
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Payout at maturity: | If final share price is less than trigger price, one Arch Coal share; otherwise, par
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Initial share price: | $29.89
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Trigger price: | $22.42, 75% of initial price
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Pricing date: | Nov. 24
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Settlement date: | Nov. 30
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Agents: | UBS Financial Services Inc. and HSBC USA Inc.
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Fees: | 2.75%
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Cusip: | 40432R393
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