By Angela McDaniels
Tacoma, Wash., April 30 - HSBC USA Inc. priced $14.01 million of 0% knock-out buffer notes due May 10, 2013 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the real has depreciated on May 3, 2013 by more than 20% as compared to the initial spot rate.
If a knock-out event occurs, investors will be fully exposed to the depreciation of the real. If a knock-out event does not occur, the payout at maturity will be par plus the greater of the currency return and 8.25%.
The currency return is the quotient of (a) the initial spot rate minus the final spot rate divided by (b) the initial spot rate.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Brazilian real
|
| Amount: | $14,005,000
|
| Maturity: | May 10, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If knock-out event occurs, full exposure to depreciation of real; if knock-out event does not occur, par plus greater of currency return and 8.25%
|
| Knock-out event: | Real has depreciated on May 3, 2013 by more than 20% as compared to initial spot rate
|
| Initial spot rate: | 1.8871
|
| Pricing date: | April 26
|
| Settlement date: | May 3
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 4042K1K28
|
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