By Susanna Moon
Chicago, April 17 - HSBC USA Inc. priced $16.51 million of 0% knock-out buffer notes due Oct. 22, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
A knock-out event will occur if the index ever falls by more than the buffer amount of 30%.
If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors are fully exposed to any index decline.
If a knock-out event has not occurred, the payout will be par plus the index return, with a floor of par plus the contingent minimum return of 3.5%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500 index
|
| Amount: | $16,508,000
|
| Maturity: | Oct. 22, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus the index return if a knock-out event occurs; if a knock-out event has not occurred, par plus the index return, with a floor of par plus the contingent minimum return of 3.5%
|
| Initial index level: | 865.30
|
| Pricing date: | April 16
|
| Settlement date: | April 21
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1%
|
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