By Jennifer Chiou
New York, July 15 - HSBC USA Inc. priced $2 million of 0% knock-out buffer notes due Jan. 19, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
A knock-out event will occur if the index falls by more than the buffer amount of 30% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors are fully exposed to any index decline.
If a knock-out event does not occur, the payout will be par plus the index return, with a floor of par plus the contingent minimum return of 4.3%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $2 million
|
| Maturity: | Jan. 19, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus the index return if a knock-out event occurs; otherwise, par plus index return, with floor of par plus 4.3%; knock-out level is 30% below initial level
|
| Initial index level: | 901.05
|
| Pricing date: | July 13
|
| Settlement date: | July 16
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1%
|
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