By Angela McDaniels
Tacoma, Wash., May 26 – HSBC USA Inc. priced $1.2 million of 0% leveraged contingent buffered enhanced notes due June 13, 2016 linked to the American Depositary Shares of Baidu, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the final share price is less than the initial share price by more than 10%.
If no knock-out event occurs, the payout at maturity will be par plus 200% of the stock return, subject to a minimum payout of par and a maximum return of 24.4%.
If a knock-out event occurs, investors will be fully exposed to the stock’s decline from its initial price.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Leveraged contingent buffered enhanced notes
|
| Underlying stock: | Baidu, Inc. (Symbol: BIDU)
|
| Amount: | $1,195,000
|
| Maturity: | June 13, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 90% of initial share price, par plus greater of zero and stock return, subject to 24.4% maximum return; otherwise, full exposure to stock’s decline
|
| Initial ADS price: $200.13
|
| Pricing date: | May 21
|
| Settlement date: | May 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 40433BW87
|
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