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 S&P 500 index, 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 S&P 500 falls by more than 24.25% on any day during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return, subject to a maximum return of 10%. Investors will be exposed to any losses.
Otherwise, the payout will be par plus the contingent minimum return of 10%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $1.62 million
|
| Maturity date: | Feb. 13, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If initial index level falls by more than 24.25% during the life of the notes, par plus index return, capped at 10% and with full exposure to losses; otherwise par plus 10%
|
| Initial level: | 1,316.33
|
| Knock-out buffer: | 24.25% 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: | 4042K1WD1
|
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