By Marisa Wong
Madison, Wis., Jan. 31 - HSBC USA Inc. priced $1.66 million of 0% knock-out buffer notes due Feb. 11, 2013 linked to the Norwegian krone relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the currency falls by more than 20% relative to the initial spot rate on Feb. 4, 2013, the final valuation date.
If a knock-out event occurs, the payout at maturity will be par plus the currency return, with exposure to any losses.
Otherwise, the payout will be par plus any currency gain, with a contingent minimum return of 4.4%. The payout is subject to a maximum return of 10%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Norwegian krone
|
| Amount: | $1,655,000
|
| Maturity: | Feb. 11, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency falls by more than 20% from initial spot rate on Feb. 4, 2013, par plus currency return with exposure to losses; otherwise, par plus any currency gain, floor of 4.4% and cap of 10%
|
| Initial spot rate: | 5.83095
|
| Pricing date: | Jan. 27
|
| Settlement date: | Feb. 3
|
| Agents: | HSBC Securities (USA) Inc. as underwriter with J.P. Morgan Securities LLC handling distribution
|
| Fees: | 1%
|
| Cusip: | 4042K1WC3
|
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