By Susanna Moon
Chicago, Feb. 4 - HSBC USA Inc. priced $4.7 million of 0% capped knock-out buffer notes due Feb. 14, 2012 linked to Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the price of Ford stock falls by more than 25% on any day during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the share return. Investors will be exposed to any losses.
If a knock-out event does not occur, the payout will be par plus the share return, with a contingent minimum return of 10.6%.
In either case, the payout is subject to a maximum return of 25%.
J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped knock-out buffer notes
|
| Underlying shares: | Ford Motor Co. (Symbol: F)
|
| Amount: | $4.7 million
|
| Maturity: | Feb. 14, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If share price falls by more than 25%, par plus share return with exposure to losses; otherwise, par plus any stock gain, floor of 10.6%; in both cases, payout capped at 25%
|
| Initial price: | $15.40
|
| Pricing date: | Feb. 2
|
| Settlement date: | Feb. 7
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 4042K1DQ3
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
