By Marisa Wong
Madison, Wis., May 1 – HSBC USA Inc. priced $500,000 of 0% barrier notes with step-up digital return due Oct. 31, 2016 linked to the Mexican peso relative to the euro, 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 $1,291 for each $1,000 principal amount of notes.
If the currency gains by up to and including 4%, the payout will be $1,040 per $1,000 of notes.
If the currency finishes at or above the 90% 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 and JPMorgan Chase Bank, NA as placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier notes with step-up digital return
|
| Underlying currency: | Mexican peso relative to the euro
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| Amount: | $500,000
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| Maturity: | Oct. 31, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 29.1% if currency gains by more than 4%; par plus 4% if currency gains by up to 4%; par if currency falls by 10% or less; otherwise, full exposure to losses
|
| Initial spot rate: | 16.70645
|
| Pricing date: | April 24
|
| Trade date: | April 27
|
| Settlement date: | April 30
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
|
| Fees: | 1.25%
|
| Cusip: | 40433BV39
|
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