By Toni Weeks
San Diego, May 29 - HSBC USA Inc. priced $55.18 million of 0% knock-out buffer notes due June 10, 2013 linked to the performance of the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the peso has depreciated, as compared to the initial spot rate, by more than 15%.
If a knock-out event occurs, the payout at maturity will be par plus the currency return. Otherwise, the payout will be par plus the greater of the currency return and 9.45%.
The currency return is the quotient of (a) the initial spot rate minus the final spot rate divided by (b) the initial spot rate.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Mexican peso
|
| Amount: | $55.18 million
|
| Maturity date: | June 10, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If peso has depreciated by more than 15%, par plus currency return; otherwise, par plus greater of currency return and 9.45%
|
| Initial exchange rate: | 14.0180 pesos per dollar
|
| Pricing date: | May 24
|
| Settlement date: | June 1
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 4042K1Q89
|
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