Published on 2/14/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $22.38 million buffered return enhanced notes on S&P 500
By Susanna Moon
Chicago, Feb. 14 - HSBC USA Inc. priced $22.38 million of 0% buffered return enhanced notes due Feb. 27, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus double any gain in the index, up to a maximum return of 11.5%.
Investors will receive par if the index falls by up to 10% and will lose 1.11111% for every 1% decline beyond 10%.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the placement agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered return enhanced notes
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Underlying index: | S&P 500
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Amount: | $22,384,000
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Maturity: | Feb. 27, 2013
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 200% of any index gain, capped at 11.5%; par if index declines by up to 10%; 1.11111% loss per 1% drop beyond 10%
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Initial level: | 1,342.64
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Pricing date: | Feb. 10
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Settlement date: | Feb. 15
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Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
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Fees: | 1%
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Cusip: | 4042K1XK4
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