Published on 3/1/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $28 million annual income opportunity securities with auto cap on 12 stocks
By Jennifer Chiou
New York, March 1 - HSBC USA Inc. priced $28 million of annual income opportunity securities with auto cap due March 3, 2016 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the American depositary shares of AngloGold Ashanti Ltd., Baidu, Inc., Gold Fields Ltd., Icici Bank Ltd., Infosys Technologies Ltd., Mobile Telesystems OJSC, Teva Pharmaceutical Industries Ltd., Turkcell Iletisim Hizmetleri AS, Tata Motors Ltd., Yingli Green Energy Holding Co. Ltd. and Petroleo Brasileiro SA-Petrobras as well as the common stock of Check Point Software Technologies Ltd.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.
If a basket stock's return is zero or positive, its performance will be fixed at 8%. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.
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
|
| Underlying ADSs/stock: | AngloGold Ashanti Ltd. (Symbol: AU), Baidu, Inc. (Symbol: BIDU), Gold Fields Ltd. (Symbol: GFI), Icici Bank Ltd. (Symbol: IBN), Infosys Technologies Ltd. (Symbol: INFY), Mobile Telesystems OJSC(Symbol: MBT), Teva Pharmaceutical Industries Ltd. (Symbol: TEVA), Turkcell Iletisim Hizmetleri AS (Symbol: TKC), Tata Motors Ltd. (Symbol: TTM), Yingli Green Energy Holding Co. Ltd. (Symbol: YGE), Petroleo Brasileiro SA-Petrobras (Symbol: PBR), Check Point Software Technologies Ltd. (Symbol: CHKP)
|
| Amount: | $27,999,000
|
| Maturity: | March 3, 2016
|
| Coupon: | The average of the performances of the basket stocks, subject to a floor of zero; if a stock's return is zero or positive, its performance will be 8%; otherwise, its performance will be the greater of its return and negative 30%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | Feb. 25
|
| Settlement date: | March 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 4042K1ED1
|
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