By Marisa Wong
Madison, Wis., March 19 - HSBC USA Inc. priced $1.52 million of 0% barrier notes due March 31, 2014 with step-up digital return linked to the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
If the currency return is greater than 3%, the payout at maturity will be $1,280 for each $1,000 principal amount of notes.
If the currency gains by up to 3%, the payout will be $1,050 per $1,000 of notes.
If the currency finishes at or above the 85% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier notes with step-up digital return
|
| Underlying currency: | Brazilian real relative to the dollar
|
| Amount: | $1.52 million
|
| Maturity: | March 31, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 28% if currency gains by more than 3%; par plus 5% if currency gains by up to 3%; par if currency falls by 15% or less; otherwise, full exposure to losses
|
| Initial spot rate: | 1.9749
|
| Pricing date: | March 15
|
| Settlement date: | March 22
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XD24
|
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