By Angela McDaniels
Tacoma, Wash., July 3 - HSBC USA Inc. priced $1.21 million of 0% autocallable notes due Jan. 9, 2014 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called if the spot rate has appreciated from the initial rate on any of the semiannual observation dates. The call premium will be 10.25% if the notes are called on Jan. 2, 2013, 20.5% if called on July 1, 2013 and 30.75% if called on Jan. 2, 2014.
If the notes are not called, the payout at maturity will be par if the reference currency return is less than or equal to zero but greater than or equal to negative 15%. Investors will be fully exposed to the decline if the reference currency return is less than negative 15%.
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 with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying currency: | Brazilian real
|
| Amount: | $1,207,000
|
| Maturity date: | Jan. 9, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if reference currency return is less than or equal to zero but greater than or equal to negative 15%; full exposure to decline if reference currency return is less than negative 15%
|
| Call: | Automatically at par plus 20.5% per year if spot rate has appreciated from initial rate on Jan. 2, 2013, July 1, 2013 or Jan. 2, 2014
|
| Initial exchange rate: | 2.0213
|
| Pricing date: | June 29
|
| Settlement date: | July 9
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 4042K1V26
|
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