By Marisa Wong
Madison, Wis., Feb. 29 - HSBC USA Inc. priced $5,686,000 of 0% knock-out buffer notes due Sept. 3, 2013 linked to a basket of equally weighted currencies relative to the U.S. dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying currencies are the Brazilian real, Mexican peso and Canadian dollar.
A knock-out event occurs if the basket falls by more than 20% on the final valuation date.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of the basket return and the 12.5% contingent return.
If a knock-out event occurs, the payout at maturity will be par plus the basket return, with full exposure to losses.
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 currencies: | Brazilian real, Mexican peso and Canadian dollar, relative to the U.S. dollar
|
| Amount: | $5,686,000
|
| Maturity: | Sept. 3, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If closing basket level on Aug. 26, 2013 is less than 80% of initial level, full exposure to decline; otherwise, par plus greater of basket return and 12.5%
|
| Initial spot rates: | 0.99855 for Canadian dollar; 12.85815 for peso; 1.7098 for real
|
| Pricing date: | Feb. 24
|
| Settlement date: | March 2
|
| Agents: | HSBC Securities (USA) Inc., distribution through J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 4042K1XV0
|
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