By Marisa Wong
Madison, Wis., Nov. 19 - HSBC USA Inc. priced $10.78 million of 0% barrier notes due Dec. 3, 2013 with step-up digital return linked to the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
If the currency return is more than 5%, the payout at maturity will be $1,234.50 for each $1,000 principal amount of notes.
If the currency gains by up to and including 5%, the payout will be $1,050 per $1,000 of notes.
If the currency finishes at or above the 85% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier notes with step-up digital return
|
| Underlying currency: | Mexican peso relative to the dollar
|
| Amount: | $10.78 million
|
| Maturity: | Dec. 3, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 23.45% if currency gains by more than 5%; par plus 5% if currency gains by up to 5%; par if currency falls by 15% or less; otherwise, full exposure to losses
|
| Initial spot rate: | 13.23145
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 26
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
|
| Fees: | 1%
|
| Cusip: | 40432X3L3
|
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