By E. Janene Geiss
Philadelphia, Jan. 28 - HSBC USA Inc. priced $1 million of 0% gold participation notes due Feb. 2, 2012 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.
If the final price of gold is greater than the initial price of gold, the payout at maturity will be par plus the lesser of the gold return and 16%.
If the gold return is between zero and negative 10%, the payout will be par.
If the gold return is less than or equal to negative 10%, the payout will be par plus the gold return.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Gold participation notes
|
| Underlying commodity: | Gold
|
| Amount: | $1 million
|
| Maturity: | Feb. 2, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final gold price is greater than initial price, par plus return, capped at 16%; par if price declines by less than 10%; full exposure to decline if gold falls to or below trigger level
|
| Initial price: | $1,328.00
|
| Trigger level: | $1,195.20, 90% of initial price
|
| Pricing date: | Jan. 26
|
| Settlement date: | Feb. 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 4042K1CQ4
|
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