Published on 4/23/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.8 million annual income opportunity notes linked to industry titans
By Angela McDaniels
Tacoma, Wash., April 23 - HSBC USA Inc. priced $3.8 million of annual income opportunity notes due April 24, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Altria Group, Inc., Bristol-Myers Squibb Co., CME Group Inc., Cisco Systems, Inc., Kinder Morgan Energy Partners, LP, Lockheed Martin Corp., Maxim Integrated Products, Inc., McDonald's Corp., Monsanto Co. and Wal-Mart Stores, Inc.
Interest is payable annually and will equal the greater of (a) the average of the performances of the basket stocks and (b) 0.5%.
A stock's performance will be equal to the auto cap rate, 5.75%, if its return is greater than or equal to zero. If a stock's return is negative, 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
|
| Underlying stocks: | Altria Group, Inc., Bristol-Myers Squibb Co., CME Group Inc., Cisco Systems, Inc., Kinder Morgan Energy Partners, LP, Lockheed Martin Corp., Maxim Integrated Products, Inc., McDonald's Corp., Monsanto Co. and Wal-Mart Stores, Inc.
|
| Amount: | $3,802,000
|
| Maturity: | April 24, 2019
|
| Coupon: | Average of performances of basket stocks, subject to minimum interest rate of 0.5%; payable annually
|
| Stock performance: | If stock's return is greater than or equal to zero, 5.75%; otherwise, greater of stock return and negative 25%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | April 19
|
| Settlement date: | April 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40432XBJ9
|
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