By Angela McDaniels
Tacoma, Wash., Sept. 9 - HSBC USA Inc. priced $2.94 million of notes due March 12, 2012 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry a coupon of 10.25% per year. Interest is payable quarterly.
If Apple stock falls below 75% of its initial level at any time on any day during the life of the notes and the final share price is less than the initial share price, the payout at maturity will be a number of Apple shares equal to $1,000 divided by the initial share price. Otherwise, the payout will be par in cash.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Notes
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Underlying stock: | Apple Inc. (Nasdaq: AAPL)
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Amount: | $2.94 million
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Maturity: | March 12, 2012
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Coupon: | 10.25%, payable quarterly
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Price: | Par
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Payout at maturity: | If Apple stock falls below trigger price at any time during life of notes and finishes below initial share price, 2.60464 Apple shares; otherwise, par in cash
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Initial share price: | $383.93
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Trigger price: | $287.95, 75% of initial share price
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Pricing date: | Sept. 7
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Settlement date: | Sept. 12
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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Cusip: | 4042K1NM1
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