By Toni Weeks
San Diego, Aug. 24 - HSBC USA Inc. priced $1.1 million of 0% knock-out buffer notes due Sept. 6, 2013 linked to the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the currency falls by more than 15% relative to the initial level on the final valuation date of Aug. 29, 2013.
If a knock-out event occurs, the payout at maturity will be par plus the currency return, with full exposure to losses.
Otherwise, the payout will be par plus the greater of the 8.25% contingent minimum return and the currency return.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Brazilian real
|
| Amount: | $1.1 million
|
| Maturity date: | Sept. 6, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If real falls by more than 15% relative to dollar on Aug. 29, 2013, par plus return with exposure to losses; otherwise, par plus greater of currency return and 8.25%
|
| Initial exchange rate: | 2.0210
|
| Pricing date: | Aug. 22
|
| Settlement date: | Aug. 29
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 4042K13L5
|
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