By Angela McDaniels
Tacoma, Wash., Jan. 15 - HSBC USA Inc. priced $36.82 million of 0% return enhanced notes due Jan. 28, 2014 linked to the performance of the deliverable Chinese renminbi relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
If the reference currency return is greater than or equal to zero, meaning the renminbi has appreciated relative to the dollar, the payout at maturity will be par plus 500% of the reference currency return. If the reference currency return is less than zero, investors will be fully exposed to the decline.
HSBC Securities (USA) Inc. will buy the notes from the issuer for distribution to J.P. Morgan Securities LLC for resale.
| Issuer: | HSBC USA Inc.
|
| Issue: | Return enhanced notes
|
| Underlying currency: | Deliverable Chinese renminbi
|
| Amount: | $36.82 million
|
| Maturity: | Jan. 28, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 500% of any appreciation of renminbi relative to dollar; full exposure to any depreciation of renminbi relative to dollar
|
| Initial spot rate: | 6.182 deliverable renminbi per dollar
|
| Pricing date: | Jan. 11
|
| Settlement date: | Jan. 18
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 0.9%
|
| Cusip: | 40432X7C9
|
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