By Susanna Moon
Chicago, Feb. 8 - HSBC USA Inc. priced $2 million of capped knock-out buffer notes due Feb. 23, 2012 based on the performance of the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the fund ever falls by more than 20% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the fund return, up to a maximum return of $1,250 per $1,000 principal amount. Investors will be exposed to any losses.
Otherwise, the payout will be par plus any fund gain, with a minimum return of 8.3%. Any gains will be capped at 25%
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped knock-out buffer notes
|
| Underlying fund: | iShares MSCI Emerging Markets index fund
|
| Amount: | $2 million
|
| Maturity: | Feb. 23, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund closes below 80% of initial share price during life of notes, par plus return with exposure to losses; otherwise, par plus any gain, floor of 8.3%; in either case, gains capped at 25%
|
| Initial level: | $46.48
|
| Pricing date: | Feb. 4
|
| Settlement date: | Feb. 9
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 4042K1DT7
|
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