By Toni Weeks
San Diego, Jan. 31 - HSBC USA Inc. priced $1.62 million of knock-out buffer notes due Feb. 13, 2013 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the agent.
A knock-out event occurs if the fund falls by more than 20% on the final valuation date.
If a knock-out event occurs, the payout at maturity will be par plus the fund return. Investors will be fully exposed to losses.
Otherwise, the payout will be par plus the contingent minimum return of 11.65%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying fund: | iShares MSCI Emerging Markets index fund
|
| Amount: | $1.62 million
|
| Maturity date: | Feb. 13, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund falls by more than 20% on Feb. 8, 2013, par plus fund return, with full exposure to losses; otherwise par plus 11.65%
|
| Initial price: | $42.37
|
| Knock-out buffer: | 20% of initial level
|
| Pricing date: | Jan. 27
|
| Settlement date: | Feb. 1
|
| Agents: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (agent)
|
| Fees: | 1%
|
| Cusip: | 4042K1WE9
|
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