By Marisa Wong
Milwaukee, Jan. 27 - HSBC USA Inc. priced $817,000 of 0% buffered market participation securities due July 27, 2011 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus any index gain, subject to a maximum return of 10.5%.
The maximum cap was previously set at 18%, then lowered to 10% and subsequently raised to 10.5%, according to three separate 424B2 filings.
Investors will receive par if the index declines by 25% or less and will lose 1% for every 1% that it declines beyond 25%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered market participation securities
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Underlying index: | Russell 2000
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Amount: | $817,000
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Maturity: | July 27, 2011
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus any index gain, subject to maximum return of 10.5%; par if index falls by 25% or less; 1% loss for every 1% decline beyond 25%
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Initial index level: | 617.12
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Pricing date: | Jan. 22
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Settlement date: | Jan. 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.6%
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Cusip: | 4042K0L60
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