By Angela McDaniels
Tacoma, Wash., Nov. 22 - HSBC USA Inc. priced $1 million of 0% buffered Accelerated Market Participation Securities due Nov. 25, 2013 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the SPDR Trust, series 1, with a 44% weight, the iShares MSCI Emerging Markets index fund with a 28% weight and the iShares MSCI EAFE index fund with a 28% weight.
The payout at maturity will be par plus double any increase in the basket, subject to a maximum return of 42.5%. Investors will receive par if the basket falls by 10% or less and will lose 1.11111% for each 1% that it declines beyond 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered Accelerated Market Participation Securities
|
| Underlying ETFs: | SPDR Trust, series 1 (44% weight), iShares MSCI Emerging Markets index fund (28% weight) and iShares MSCI EAFE index fund (28% weight)
|
| Amount: | $1 million
|
| Maturity: | Nov. 25, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus double any basket gain, up to maximum return of 42.5%; par if basket falls by 10% or less; 1.11111% loss for each 1% decline beyond 10%
|
| Initial share prices: | $120.02 for SPDR Trust; $46.69 for iShares MSCI Emerging Markets; $57.77 for iShares MSCI EAFE
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 4042K1AS2
|
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