By Marisa Wong
Madison, Wis., Dec. 6 - HSBC USA Inc. priced $9.63 million of 0% knock-out buffer notes due Dec. 19, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the index falls by more than 41% from the initial level 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, with full exposure to losses.
Otherwise, the payout will be par plus a contingent return of 10%.
In either case, the maximum return will be 10%.
HSBC Securities (USA) Inc. will be the underwriter, and J.P. Morgan Securities LLC is the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500 index
|
| Amount: | $9,627,000
|
| Maturity: | Dec. 19, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index ever falls by more than 41% during life of notes, par plus index return, with exposure to losses; otherwise, par plus 10%; in both cases, return capped at 10%
|
| Initial level: | 1,244.28
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 7
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 4042K1UA9
|
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