HSBC amends knock-out buffer notes due 2014 linked to three currencies

By Susanna Moon

Chicago, Feb. 26 - HSBC USA Inc. pushed back pricing of its 0% knock-out buffer notes linked to a basket of three equally weighted currencies relative to the dollar, according to an FWP with the Securities and Exchange Commission.

The notes will now price on March 1 and settle on March 8, with maturity pushed back to Sept. 8, 2014. The notes were originally set to price on Feb. 22 and settle on March 1, with maturity set for Aug. 29, 2014.

As noted before, the underlying currencies are the Brazilian real, the Chilean peso and the Mexican peso.

If the basket finishes at or above the 85% trigger level, the payout at maturity will be par plus any basket gain, with a contingent minimum return of 8.6%. The contingent minimum return was increased from 8.15%.

If the basket falls by more than 15%, the payout will be par plus the basket return, with full exposure to any losses.

HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the agent.

The Cusip number is 40432XBL4.

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