By Angela McDaniels
Tacoma, Wash., Dec. 20 - HSBC USA Inc. priced $3.69 million of yield optimization notes with contingent protection due June 22, 2011 linked to the class B common stock of CBS Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry an annualized coupon of 9.5%. Interest is payable monthly.
The face amount of each note is $18.00, which is equal to the initial share price of CBS stock.
The payout at maturity will be par unless the final price of CBS stock is less than 80% of the initial share price, in which case investors will receive one CBS share per note.
UBS Financial Services Inc. and HSBC Securities (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: | CBS Corp. class B common stock (Symbol: CBS)
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Amount: | $3,688,596
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Maturity: | June 22, 2011
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Coupon: | 9.5%, payable monthly
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Price: | Par of $18.00
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Payout at maturity: | If final price of stock is less than trigger price, one CBS share per note; otherwise, par
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Initial share price: | $18.00
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Trigger price: | $14.40, 80% of initial price
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Pricing date: | Dec. 16
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Settlement date: | Dec. 22
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40432R344
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