By Susanna Moon
Chicago, April 5 - HSBC USA Inc. priced $3 million of 0% knock-out buffer notes due Oct. 11, 2011 based on the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the shares fall by more than the 30% buffer during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the fund return, up to a maximum return of 34.4%. Investors will be exposed to any losses.
If a knock-out event does not occur, the payout will be par plus the fund return, with a cap of 34.4% and a contingent minimum return of 5%.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying fund: | Market Vectors Gold Miners
|
| Amount: | $3 million
|
| Maturity: | Oct. 11, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If shares fall by more than 30% during life of notes, par plus fund return with exposure to losses; otherwise, par plus fund return, floor of 5%; in either case, cap of 34.4%
|
| Initial level: | $44.50
|
| Pricing date: | April 1
|
| Settlement date: | April 7
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1%
|
| Cusip: | 4042K0V77
|
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