By Toni Weeks
San Diego, Oct. 4 - HSBC USA Inc. priced $11.26 million of knock-out buffer notes due Oct. 17, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are the agents.
A knock-out event occurs if the S&P 500 falls by more than 20% on any day during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors will be exposed to any losses.
Otherwise, the payout will be par plus the index return, subject to a minimum return of 7.85%.
In either case, the maximum return will be 20%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $11.26 million
|
| Maturity date: | Oct. 17, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If initial index level falls by more than 20% during the life of the notes, par plus index return, with exposure to losses; otherwise par plus index return, with minimum return of 7.85%; maximum return of 20% in either case
|
| Initial level: | 1,134.42
|
| Knock-out buffer: | 20% of initial level
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Agents: | HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 4042K1PT4
|
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