Published on 10/10/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.42 million knock-out buffer notes linked to basket of four currencies
By Toni Weeks
San Diego, Oct. 10 - HSBC USA Inc. priced $1.42 million of 0% knock-out buffer notes due April 15, 2014 linked to a basket of four currencies relative to the dollar, according to a 424B2 with the Securities and Exchange Commission.
The equally weighted basket components include the Indian rupee, the Indonesian rupiah, the Korean won and the Malaysian ringgitt.
A knock-out event occurs if the basket falls by more than 10% relative to the initial level on the final valuation date of April 8, 2014.
If a knock-out event occurs, the payout at maturity will be par plus the basket return, with full exposure to losses.
Otherwise, the payout will be par plus the basket return, subject to a contingent minimum return of 10.25%.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currencies: | Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgitt, all equally weighted and relative to the dollar
|
| Amount: | $1.42 million
|
| Maturity date: | April 15, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket falls by more than 15% on April 8, 2014, par plus basket return, with full exposure to losses; otherwise par plus basket return, with floor of 10.25%
|
| Initial exchange rates: | 51.6185 for rupee, 9,594 for rupiah, 1,110.60 for won and 3.0502 for ringgit
|
| Knock-out buffer: | 10% of initial level
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 15
|
| Underwriter: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (agent)
|
| Fees: | 1.25%
|
| Cusip: | 4042K16G3
|
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