Published on 7/29/2010 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $15 million auto cap annual income opportunity securities linked to 12 stocks
By Angela McDaniels
Tacoma, Wash., July 29 - HSBC USA Inc. priced $15 million of annual income opportunity securities with auto cap due July 30, 2015 linked to a basket of 12 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common shares of Archer-Daniels-Midland Co., Amazon.com, Inc., Bank of America Corp., Berkshire Hathaway Inc., Exelon Corp., First Solar, Inc., Gilead Sciences Inc., Applied Materials Inc., Newmont Mining Corp., Pfizer Inc., Verizon Communications Inc. and Waste Management, 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 the return of a stock is positive, its performance will be 6.5%. Otherwise, its performance will be the greater of its return and negative 20%.
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: | Archer-Daniels-Midland Co., Amazon.com, Inc., Bank of America Corp., Berkshire Hathaway Inc., Exelon Corp., First Solar, Inc., Gilead Sciences Inc., Applied Materials Inc., Newmont Mining Corp., Pfizer Inc., Verizon Communications Inc. and Waste Management, Inc.
|
| Amount: | $15 million
|
| Maturity: | July 30, 2015
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| Coupon: | The average of the performances of the basket stocks, subject to a floor of 0.5%; if the return of stock is positive, its performance will be 6.5%; otherwise, its performance will be the greater of its return and negative 20%; payable annually
|
| Price: | Par
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| Payout at maturity: | Par
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| Pricing date: | July 27
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| Settlement date: | July 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 4042K03B9
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