By Toni Weeks
San Luis Obispo, Calif., March 20 – HSBC USA Inc. priced $1 million of 0% barrier notes with step-up digital return due April 6, 2016 linked to the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
If the currency return is greater than 4%, the payout at maturity will be $1,184 per $1,000 principal amount of notes.
If the currency return is positive but less than or equal to 4%, the payout will be $1,040 per $1,000 principal amount.
If the currency return is zero or negative but greater than or equal to negative 10%, 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 agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier notes with step-up digital return
|
| Underlying currency: | Mexican peso relative to dollar
|
| Amount: | $1 million
|
| Maturity: | April 6, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency return is greater than 4%, $1,184 per $1,000 principal amount; if currency return is positive but less than or equal to 4%, $1,040 per $1,000 principal amount; if currency return is zero or negative but equal to or greater than negative 10%, par; otherwise, full exposure to losses
|
| Initial spot rate: | 15.4318
|
| Pricing date: | March 18
|
| Settlement date: | March 23
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
|
| Fees: | 1%
|
| Cusip: | 40433BK23
|
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