By Angela McDaniels
Tacoma, Wash., Feb. 22 - HSBC USA Inc. priced $2.81 million of 0% autocallable trigger notes due Aug. 27, 2012 linked to palladium, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning May 17, the notes will be called at 107% of par if the official price of palladium is greater than or equal to the initial price on any trading day.
If the notes are not called and the final price of palladium is at least 80% of the initial price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the price declines from the initial price.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable trigger notes
|
| Underlying commodity: | Palladium
|
| Amount: | $2,807,000
|
| Maturity: | Aug. 27, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if final price of palladium is greater than or equal to trigger price; otherwise, full exposure to losses
|
| Call: | Automatically at 107% of par if price of palladium is greater than or equal to initial price on any trading day from May 17 onward
|
| Initial palladium price: | $697.00
|
| Trigger price: | $557.60, 80% of initial price
|
| Pricing date: | Feb. 17
|
| Settlement date: | Feb. 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 0.5%
|
| Cusip: | 4042K1XN8
|
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