HSBC plans to price knock-out buffer notes linked to Brazilian real

By Angela McDaniels

Tacoma, Wash., Oct. 9 - HSBC USA Inc. plans to price 0% knock-out buffer notes due Oct. 28, 2013 linked to the performance of the Brazilian real relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

A knock-out event occurs if the real has depreciated, compared to the initial spot rate, by more than 15% on Oct. 21, 2013.

If a knock-out event does not occur, the payout at maturity will be par plus the greater of the contingent minimum return and the currency return. The contingent minimum return is expected to be at least 5.6% and will be set at pricing.

If a knock-out event occurs, investors will be fully exposed to the depreciation of the real.

The notes are expected to price Oct. 12 and settle Oct. 19.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC and JPMorgan Chase Bank NA as dealers.

The Cusip number is 4042K16Y4.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.