By Jennifer Chiou
New York, March 3 - HSBC USA Inc. priced $2.96 million of 0% knock-out buffer notes due March 20, 2012 linked to the common stock of General Motors Co., according to a 424B2 with the Securities and Exchange Commission.
A knock-out event occurs if the price of General Motors stock falls by more than the 25% on any day during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the share return. Investors will be exposed to any losses.
If a knock-out event does not occur, the payout will be par plus the share return, subject to a contingent minimum return of 4.25.
In either case, the payout will be capped at 25%.
J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying stock: | General Motors Co. (Symbol: GE)
|
| Amount: | $2,958,000
|
| Maturity: | March 20, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If share price falls by more than 25% during life of notes, par plus share return with exposure to losses; otherwise, par plus share return, floor of 4.25%; cap of 25%
|
| Initial price: | $32.95
|
| Pricing date: | March 1
|
| Settlement date: | March 4
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 4042K1EN9
|
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