By Susanna Moon
Chicago, April 30 - HSBC USA Inc. priced $2.31 million of 0% barrier notes with step-up digital return due May 12, 2014 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 more than 3%, the payout at maturity will be $1,275 per $1,000 principal amount of notes.
If the currency gains by 3% or less, the payout will be $1,050 per $1,000 principal amount of notes.
If the currency falls but finishes at or above the 85% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
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: | $2.31 million
|
| Maturity: | May 12, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency gains by more than 3%, par plus 27.5%; if currency gains by 3% or less, par plus 5%; if currency falls by up to 15%, par; otherwise, full exposure to any losses
|
| Initial spot rate: | 2.0001
|
| Pricing date: | April 26
|
| Settlement date: | May 3
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XEE7
|
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