Published on 6/1/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6,000 additional head start annual income opportunity notes linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., June 1 - HSBC USA Inc. priced an additional $6,000 principal amount of head start annual income opportunity notes with auto cap due May 30, 2017 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The total issue size is now $1.49 million.
The basket includes American Electric Power Co., AT&T Inc., Biogen Idec Inc., Kimberly-Clark Corp., Lockheed Martin Corp., Maximum Integrated Products, Inc., Mosaic Co., Pfizer Inc., Polo Ralph Lauren Corp. and Silver Wheaton Corp.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.
A stock's performance will be equal to the 6.25% auto cap rate if its return is greater than or equal to negative 10%. If a stock's return is less than negative 10%, its performance will be the greater of its return and negative 25%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Head start annual income opportunity notes with auto cap
|
| Underlying stocks: | American Electric Power Co., AT&T Inc., Biogen Idec Inc., Kimberly-Clark Corp., Lockheed Martin Corp., Maximum Integrated Products, Inc., Mosaic Co., Pfizer Inc., Polo Ralph Lauren Corp. and Silver Wheaton Corp.
|
| Amount: | $1,494,000, increased from $1,488,000
|
| Maturity: | May 30, 2017
|
| Coupon: | Average of performances of basket stocks, subject to minimum interest rate of zero; payable annually
|
| Stock performance: | If stock's return is negative 10% or greater, 6.25%; otherwise, greater of stock return and negative 25%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing dates: | May 24 for $1,488,000; May 30 for $6,000
|
| Settlement date: | May 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
| Cusip: | 4042K1K36
|
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