New Issue: HSBC sells $805,000 capped knock-out buffer notes tied to stock basket via JPMorgan

By Marisa Wong

Madison, Wis., July 20 - HSBC USA Inc. priced $805,000 of 0% capped knock-out buffer notes due Aug. 10, 2011 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Broadcom Corp., Hewlett-Packard Co., IBM Corp., Marvell Technology Group Ltd., Oracle Corp., Qualcomm Inc., SanDisk Corp. and Seagate Technology.

If the final basket level has decreased from the initial level by more than 25% during the life of the notes, the payout at maturity will be par plus the basket return. Otherwise, the payout will be par plus the greater of the basket return and a contingent minimum return of 8%.

In either case, the return will be capped at 25%.

J.P. Morgan Securities Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Capped knock-out buffer notes
Underlying stocks:	Broadcom Corp., Hewlett-Packard Co., IBM Corp., Marvell Technology Group Ltd., Oracle Corp., Qualcomm Inc., SanDisk Corp. and Seagate Technology
Amount:	$805,000
Maturity:	Aug. 10, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	If basket falls by more than 25% during life of notes, par plus basket return; otherwise, par plus greater of basket return and 8%; in both cases, return is capped at 25%
Initial prices:	$35.97 for Broadcom, $46.16 for Hewlett-Packard, $128.03 for IBM, $16.62 for Marvell, $23.30 for Oracle, $35.96 for Qualcomm, $41.93 for SanDisk and $14.13 for Seagate
Pricing date:	July 16
Settlement date:	July 21
Agent:	J.P. Morgan Securities Inc.
Fees:	1%
Cusip:	4042K03F

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.