By Angela McDaniels
Tacoma, Wash., Feb. 20 - HSBC USA Inc. priced $2.8 million of 0% knock-out buffer notes due March 4, 2014 linked to the performance of a basket of currencies relative to the Japanese yen, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket currencies are the Brazilian real, the Chilean peso and the Mexican peso.
A knock-out event occurs if the final basket level has fallen from the initial basket level by more than 15%.
If a knock-out event occurs, investors will be fully exposed to the basket's decline from its initial level. Otherwise, the payout at maturity will be par plus the greater of the basket return and 7.5%.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currencies: | Brazilian real, Chilean peso and Mexican peso, equally weighted and measured relative to Japanese yen
|
| Amount: | $2,795,000
|
| Maturity: | March 4, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final basket level has fallen from initial basket level by more than 15%, full exposure to decline from initial level; otherwise, par plus greater of basket return and 7.5%
|
| Initial spot rates: | 47.8622 for real; 0.1992 for Chilean peso; 7.3965 for Mexican peso
|
| Pricing date: | Feb. 15
|
| Settlement date: | Feb. 25
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XBH3
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
