By Jennifer Chiou
New York, Sept. 7 - HSBC USA Inc. priced $505,000 of 0% capped knock-out buffer notes due Sept. 19, 2012 linked to the common stock of Apple Inc., according to a 424B2 with the Securities and Exchange Commission.
A knock-out event occurs if the final price of Apple stock falls by more than the 25% relative to the initial price.
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%.
In either case, the payout will be capped at 25%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped knock-out buffer notes
|
| Underlying stock: | Apple Inc. (Symbol: AAPL)
|
| Amount: | $505,000
|
| Maturity: | Sept. 19, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If share price falls by more than 25%, par plus share return with exposure to losses; otherwise, par plus share return with floor of 4%; cap of 25%
|
| Initial price: | $374.05
|
| Pricing date: | Sept. 2
|
| Settlement date: | Sept. 8
|
| Agents: | HSBC Securities (USA) Inc.; J.P. Morgan Securities LLC (placement agent)
|
| Fees: | 1%
|
| Cusip: | 4042K1NA7
|
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