By Angela McDaniels
Tacoma, Wash., Aug. 23 - HSBC USA Inc. priced $4.05 million of 0% autocallable optimization securities with contingent protection due Aug. 24, 2011 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Apple stock closes at or above its initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 17.04%.
The observation dates are Sept. 20, Oct. 18, Nov. 18, Dec. 20, Jan. 18, Feb. 18, March 18, 2011, April 18, 2011, May 18, 2011, June 20, 2011 and July 18, 2011.
The payout at maturity will be par if the stock finishes at or above 75% of its initial price. Otherwise, investors will be fully exposed to the share price decline.
UBS Financial Services Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying stock: | Apple Inc. (Symbol: AAPL)
|
| Amount: | $4,046,350
|
| Maturity: | Aug. 24, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to trigger price, par; otherwise, par plus stock return
|
| Call: | At par plus annualized call premium of 17.04% if Apple stock closes at or above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $253.07
|
| Trigger price: | $189.80, 75% of initial share price
|
| Pricing date: | Aug. 18
|
| Settlement date: | Aug. 23
|
| Underwriter: | UBS Financial Services Inc.
|
| Fees: | 1.25%
|
| Cusip: | 40432R674
|
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