Published on 7/31/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.53 million head start annual income opportunity notes on 'industry titans'
By Toni Weeks
San Diego, July 31 - HSBC USA Inc. priced $1.53 million of head start annual income opportunity notes with auto cap due July 31, 2017 linked to a basket of 10 common stocks, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes stocks from the following "industry titans" issuers: 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 zero.
A stock's performance will be equal to the 6% 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: | 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: | $1,529,000
|
Maturity: | July 31, 2017
|
Coupon: | Average of the performances of the basket stocks, subject to a minimum interest rate of zero; payable annually
|
Stock performance: | If stock's return is greater than or equal to negative 10%, 6%; 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%
|
Cusip: | 4042K1W33
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.