By Marisa Wong
Madison, Wis., June 7 - HSBC USA Inc. priced $11.12 million of 9.93% trigger yield optimization notes due June 7, 2012 linked to Arch Coal, Inc. shares, according to a 424B2 with the Securities and Exchange Commission.
Interest will be payable monthly.
The face amount of each note is equal to $27.30, which is the initial share price.
The payout at maturity will be par unless the final price of Arch Coal stock is less than 75% of the initial share price, in which case investors will receive one Arch Coal share per note.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger yield optimization notes
|
| Underlying stock: | Arch Coal, Inc. (NYSE: ACI)
|
| Amount: | $11,116,095.90
|
| Maturity: | June 7, 2012
|
| Coupon: | 9.93%, payable monthly
|
| Price: | Par of $27.30
|
| Payout at maturity: | Par unless final price is less than trigger price, in which case one Arch Coal share per note
|
| Initial price: | $27.30
|
| Trigger price: | $20.48, or 75% of initial price
|
| Pricing date: | June 3
|
| Settlement date: | June 8
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40433C767
|
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