By Jennifer Chiou
New York, Oct. 11 - HSBC USA Inc. priced $4.41 million of 0% knock-out buffer notes due Oct. 22, 2013 linked to the Brazilian real relative to the dollar, according to a 424B2 with the Securities and Exchange Commission.
A knock-out event occurs if the final spot rate is less than the initial spot rate by more than 15%.
If a knock-out event occurs, the payout at maturity will be par plus the currency return, with full exposure to losses.
Otherwise, the payout will be par plus the greater of the currency return and a contingent minimum return of 5.7%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Brazilian real
|
| Amount: | $4.41 million
|
| Maturity date: | Oct. 22, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If spot rate falls by more than 15% relative to initial spot rate on Oct. 15, 2013, par plus currency return with exposure to losses; otherwise, par plus greater of currency return and 5.7%
|
| Initial exchange rate: | 2.0246
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 12
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 4042K16F5
|
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