By Susanna Moon
Chicago, Nov. 19 - HSBC USA Inc. priced $5.85 million of 0% knock-out buffer notes due May 20, 2014 linked to a basket of two funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares MSCI Brazil index fund with a 70% weight and the iShares MSCI Mexico Investable Market index fund with a 30% weight.
A knock-out event occurs if the basket ever falls by more than 14% on any day during the life of the notes.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of any index gain and a contingent minimum return of 0%.
Otherwise, the payout will be par plus the index return, with exposure to any losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying basket: | iShares MSCI Brazil index fund (70% weight) and the iShares MSCI Mexico Investable Market index fund (30% weight)
|
| Amount: | $5,846,000
|
| Maturity: | May 20, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If knock-out event does not occur, par plus any gain, floor of par; otherwise, par plus return with full exposure to any losses
|
| Knock-out event: | If basket closes below trigger level on any day during life of notes
|
| Initial index levels: | $51.24 for Brazil fund; $63.43 for Mexico fund
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 20
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1.25%
|
| Cusip: | 40432X3P4
|
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