By Angela McDaniels
Tacoma, Wash., March 24 - HSBC USA Inc. priced $8 million of 19% yield optimization securities with contingent protection due March 28, 2011 linked to the common stock of American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The face amount of each note is $33.39, which is equal to the closing price of AIG stock on the pricing date.
Interest is payable monthly.
If the final price of AIG stock is at least 65% of the initial share price, the payout at maturity will be par. Otherwise, the payout will be one share of AIG per note.
UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Yield optimization securities with contingent protection
|
| Underlying stock: | American International Group, Inc. (Symbol: AIG)
|
| Amount: | $7,999,977
|
| Maturity: | March 28, 2011
|
| Coupon: | 19%, payable monthly
|
| Price: | Par of $33.39
|
| Payout at maturity: | Par unless final price of AIG stock is less than trigger price, in which case one AIG share per note
|
| Initial share price: | $33.39
|
| Trigger price: | $21.70, 65% of initial price
|
| Pricing date: | March 22
|
| Settlement date: | March 25
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 2%
|
| Cusip: | 4042EP131
|
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