By Marisa Wong
Madison, Wis., June 7 - HSBC USA Inc. priced $12.34 million of 10% trigger yield optimization notes due June 7, 2012 linked to Cummins 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 $101.40, which is the initial share price.
The payout at maturity will be par unless the final price of Cummins stock is less than 80% of the initial share price, in which case investors will receive one Cummins share per note.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger yield optimization notes
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Underlying stock: | Cummins Inc. (NYSE: CMI)
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Amount: | $12,337,743.60
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Maturity: | June 7, 2012
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Coupon: | 10%, payable monthly
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Price: | Par of $101.40
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Payout at maturity: | Par unless final price is less than trigger price, in which case one Cummins share per note
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Initial price: | $101.40
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Trigger price: | $81.12, or 80% of initial price
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Pricing date: | June 3
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Settlement date: | June 8
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40433C759
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