Published on 6/10/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3 million income plus notes linked to basket of five stocks
By Susanna Moon
Chicago, June 10 - HSBC USA Inc. priced $3 million income plus notes due June 13, 2018 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are Altria Group, Inc., Eli Lilly & Co., International Business Machines Corp., Lockheed Martin Corp. and McDonald's Corp.
The coupon will be 5.25% for the first year. After that, the coupon will be 1.25% unless every stock closes at or above its initial share price on the coupon valuation date, in which case the rate will be 10.25%. Interest will be payable annually.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Income plus notes
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Underlying stocks: | Altria Group, Inc., Eli Lilly & Co., International Business Machines Corp., Lockheed Martin Corp. and McDonald's Corp.
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Amount: | $3 million
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Maturity: | June 13, 2018
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Coupon: | 5.25% for one year; then 1.25% unless every stock closes at or above its initial share price on the coupon valuation date, in which case the rate will be 10.25%; payable annually
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Price: | Par
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Payout at maturity: | Par
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Initial prices: | $27.29 for Altria, $37.27 for Eli Lilly, $164.34 for IBM, $77.12 for Lockheed Martin and $81.15 for McDonald's
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Pricing date: | June 8
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Settlement date: | June 13
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3%
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Cusip: | 4042K1JT1
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