By Angela McDaniels
Tacoma, Wash., Oct. 12 - HSBC USA Inc. priced $11 million of 0% knock-out buffer notes due April 19, 2012 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the exchange-traded fund's share price falls by more than the 20.7% buffer during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the fund return, which could be positive or negative.
If a knock-out event does not occur, investors will receive par plus the fund return, subject to a minimum payout of par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying ETF: | iShares MSCI Emerging Markets index fund
|
| Amount: | $11 million
|
| Maturity: | April 19, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If ETF's share price falls by more than 20.7% during life of notes, par plus fund return with exposure to losses; otherwise, par plus fund return with floor of par
|
| Initial share price: | $45.68
|
| Pricing date: | Oct. 7
|
| Settlement date: | Oct. 13
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 4042K06U4
|
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