By Marisa Wong
Madison, Wis., Jan. 31 - HSBC USA Inc. priced $7.47 million of 10.19% trigger yield optimization notes due Jan. 31, 2013 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The face amount of each note is $46.13, which is equal to the initial share price of Freeport-McMoRan stock.
Interest is payable monthly.
The payout at maturity will be par unless the final price of Freeport-McMoRan stock is less than 70% of the initial share price, in which case investors will receive one Freeport-McMoRan share per note.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
Issuer: | HSBC USA Inc.
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Issue: | Trigger yield optimization notes
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Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
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Amount: | $7,470,984.15
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Maturity: | Jan. 31, 2013
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Coupon: | 10.19%, payable monthly
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Price: | Par of $46.13
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Payout at maturity: | If final share price is less than trigger price, one Freeport-McMoRan share; otherwise, par
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Initial share price: | $46.13
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Trigger price: | $32.29, 70% of initial price
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Pricing date: | Jan. 27
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Settlement date: | Jan. 31
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Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40433K553
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