By Angela McDaniels
Tacoma, Wash., Nov. 8 - HSBC USA Inc. priced $1.1 million of 0% knock-out buffer notes due Nov. 21, 2012 linked to the performance of the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the peso has depreciated on Nov. 14, 2012, as compared to the initial spot rate, by more than 25%.
If a knock-out event occurs, the payout at maturity will be par plus the currency return. Otherwise, the payout will be par plus the greater of the currency return and 8.2%.
The currency return is the quotient of (a) the initial spot rate minus the final spot rate divided by (b) the initial spot rate.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Mexican peso
|
| Amount: | $1,095,000
|
| Maturity date: | Nov. 21, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If peso has depreciated on Nov. 14, 2012 by more than 25% compared to initial spot rate, par plus currency return; otherwise, par plus greater of currency return and 8.2%
|
| Initial exchange rate: | 13.47585 pesos per dollar
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 14
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as distributor
|
| Fees: | 1%
|
| Cusip: | 4042K1RN5
|
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