Published on 9/29/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.5 million knock-out buffer notes linked to gold via JPMorgan
By E. Janene Geiss
Philadelphia, Sept. 29 - HSBC USA Inc. priced $3.5 million of 0% knock-out buffer notes due March 30, 2010 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
If the price of gold falls below the knock-out level - 87% of the initial level - during the life of the notes, the payout at maturity will be par plus the return. Otherwise, the payout will be par plus the greater of the price return and 5%, subject to a maximum return of 15%.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying index: | Price of gold
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Amount: | $3,495,000
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Maturity: | March 30, 2010
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus any return if the price of gold falls by more than 13% during life of notes; otherwise, par plus greater of index return and 5%
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Initial price: | $991.50
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Pricing date: | Sept. 25
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Settlement date: | Sept. 30
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 0.5%
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