Published on 7/30/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.55 million annual income opportunity notes on 10 stocks
By Toni Weeks
San Diego, July 30 - HSBC USA Inc. priced $2.55 million of annual income opportunity notes with auto cap due July 31, 2019 linked to a basket of 10 common stocks, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Barrick Gold Corp., Bristol-Myers Squibb Co., ConAgra Foods, Inc., FirstEnergy Corp., Halliburton Co., Intel Corp., PNC Financial Services Group, Inc., Tiffany & Co., Unitedhealth Group Inc. and Verizon Communications Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a minimum coupon of 1%.
A stock's performance will be equal to the 8% auto cap rate if its return is greater than or equal to zero. If a stock's return is less than zero, 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: | Annual income opportunity notes with auto cap
|
| Underlying stocks: | Barrick Gold Corp., Bristol-Myers Squibb Co., ConAgra Foods, Inc., FirstEnergy Corp., Halliburton Co., Intel Corp., PNC Financial Services Group, Inc., Tiffany & Co., Unitedhealth Group Inc. and Verizon Communications Inc.
|
| Amount: | $2,551,000
|
| Maturity: | July 31, 2019
|
| Coupon: | Average of the performances of the basket stocks, subject to a minimum interest rate of 1%; payable annually
|
| Stock performance: | If stock's return is greater than or equal to zero, 8%; otherwise, greater of stock return and negative 25%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4.5%
|
| Cusip: | 4042K1W41
|
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