By Susanna Moon
Chicago, Feb. 5 - HSBC USA Inc. priced $2.49 million of 0% knock-out buffer notes due Feb. 18, 2014 linked to 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 finishes below the 85% knock-out level.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of 2% and 1.75 times the currency return.
Otherwise, investors will be fully exposed to losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Mexican peso
|
| Amount: | $2.49 million
|
| Maturity: | Feb. 18, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If peso falls by more than 15%, full exposure to any losses; otherwise, par plus 175% of return, floor of 2%
|
| Initial spot rate: | 12.6277
|
| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 8
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XAM3
|
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