By E. Janene Geiss
Philadelphia, Sept. 29 - HSBC USA Inc. priced $4.16 million of 0% knock-out buffer notes due March 31, 2011 linked to the iShares MSCI Mexico Investable Market index fund, 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 falls by more than the buffer amount of 30% during the life of the notes.
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 does not occur, the payout will be par plus the index return, with a floor of par plus the contingent minimum return of 6.3%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | iShares MSCI Mexico Investable Market index fund
|
| Amount: | $4,155,000
|
| Maturity: | March 31, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus the index return if a knock-out event occurs; otherwise, par plus index return, with floor of par plus 6.3%; knock-out level is 30% below initial level
|
| Initial price: | $42.61
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1.25%
|
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