By Angela McDaniels
Tacoma, Wash., April 8 - HSBC USA Inc. priced $11.53 million of 0% barrier notes with step-up digital return due April 21, 2014 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The reference currency return will be positive if the real appreciates relative to the dollar.
If the reference currency return is greater than 3%, the payout at maturity will be $1,285 per $1,000 principal amount of notes.
If the reference currency return is greater than zero but less than or equal to 3%, the payout will be $1,050 per $1,000 principal amount of notes.
If the reference currency return is less than or equal to zero but greater than or equal to negative 15%, the payout will be par.
If the reference currency return is less than negative 15%, investors will lose 1% for each 1% that the reference currency return is below zero.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier notes with step-up digital return
|
| Underlying currency: | Brazilian real relative to dollar
|
| Amount: | $11,525,000
|
| Maturity: | April 21, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If reference currency return is greater than 3%, $1,285 per $1,000 principal amount of notes; if reference currency return is greater than zero but less than or equal to 3%, $1,050; if reference currency return is less than or equal to zero but greater than or equal to negative 15%, par; otherwise, 1% loss for each 1% that reference currency return is below zero
|
| Initial spot rate: | 2.0035 reais per dollar
|
| Pricing date: | April 5
|
| Settlement date: | April 12
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XE56
|
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