By Angela McDaniels
Tacoma, Wash., Dec. 20 - HSBC USA Inc. priced $13.36 million of 0% notes due Dec. 31, 2012 linked to the performance of a basket of currencies relative to the U.S. dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes the Brazilian real, the Singapore dollar, the Indonesian rupiah and the Chinese renminbi.
If the basket return is greater than 12.4%, the payout at maturity will be par plus the basket gain.
If the basket return is 6.2% to 12.4%, the payout will be $1,124 for each $1,000 principal amount of notes.
If the basket return is greater than zero but less than or equal to 6.2%, the payout will be $1,062 for each $1,000 of notes.
Investors will receive par if the basket falls by up to 10% and will lose 1.11111% for each 1% that it declines beyond 1%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Notes
|
| Underlying currencies: | Brazilian real, Singapore dollar, Indonesian rupiah and Chinese renminbi, equally weighted and each measured relative to U.S. dollar
|
| Amount: | $13,363,000
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus basket return if basket return is greater than 12.4%; par plus 12.4% if basket return is 6.2% to 12.4%; par plus 6.2% if basket return is greater than zero but less than or equal to 6.2%; par if basket declines by 10% or less; 1.11111% loss for every 1% that basket declines beyond 10%
|
| Initial exchange rates: | 1.8465 for real; 1.3027 for Singapore dollar; 9,065 for rupiah; 6.3352 for renminbi
|
| Pricing date: | Dec. 16
|
| Settlement date: | Dec. 23
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as dealer
|
| Fees: | 1%
|
| Cusip: | 4042K1UH4
|
© 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.
