By Jennifer Chiou
New York, March 31 - HSBC USA Inc. priced $21.11 million of 0% trigger autocallable optimization securities due April 5, 2012 linked to the common stock of Consol Energy Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus an annualized call return of 24.4% if Consol shares close at or above the initial share price on any of 12 monthly observation dates.
If the notes are not called and the final share price is greater than or equal to 70% of the initial share price, the payout at maturity will be par. Otherwise, the payout will be par plus the stock return.
UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable optimization securities
|
| Underlying stock: | Consol Energy Inc. (Symbol: CNX)
|
| Amount: | $21,107,390
|
| Maturity: | April 5, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is at least 70% of initial share price, par; otherwise, par plus stock return
|
| Call: | Automatically at par plus annualized call return of 24.4% if stock closes at or above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $52.75
|
| Trigger price: | $36.93, 70% of initial price
|
| Pricing date: | March 29
|
| Settlement date: | March 31
|
| Underwriter: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1.25%
|
| Cusip: | 40433C700
|
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