Published on 8/29/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $983,000 annual income opportunity notes due 2019 linked to 10 stocks
By Toni Weeks
San Diego, Aug. 29 - HSBC USA Inc. priced $983,000 of annual income opportunity notes with auto cap due Aug. 30, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are American Electric Power Co., Inc., 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, with a minimum coupon of 0.5%.
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 30%.
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: | American Electric Power Co., Inc., 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: | $983,000
|
| Maturity: | Aug. 30, 2019
|
| Coupon: | Average of the performances of the basket stocks, subject to a minimum interest rate of 0.5%; payable annually
|
| Stock performance: | If stock's return is greater than or equal to zero, 8%; otherwise, greater of stock return and negative 30%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | Aug. 27
|
| Settlement date: | Aug. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.275%
|
| Cusip: | 4042K1Z55
|
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