By Susanna Moon
Chicago, Nov. 17 - HSBC USA Inc. priced $15.95 million of 9.51% annualized yield optimization notes with contingent protection due Nov. 21, 2011 based on Wells Fargo & Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Each note has a face value of $27.68, which was the closing price of Wells Fargo stock at pricing.
The payout at maturity will be par unless the stock finishes at or below 75% of the initial share price, in which case the payout will be one share of Wells Fargo stock per note.
UBS Financial Services Inc. and HSBC USA Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Yield optimization notes with contingent protection
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Underlying stock: | Wells Fargo & Co. (Symbol: WFC)
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Amount: | $15,949,769.60
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Maturity: | Nov. 21, 2011
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Coupon: | 9.51%, payable monthly
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Price: | Par of $27.68
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Payout at maturity: | If final share price is less than trigger price, one Wells Fargo share; otherwise, par
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Initial share price: | $27.68
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Trigger price: | $20.76, or 75% of initial price
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Pricing date: | Nov. 15
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Settlement date: | Nov. 18
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Agents: | UBS Financial Services Inc. and HSBC USA Inc.
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Fees: | 1%
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Cusip: | 40432R443
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