By Jennifer Chiou
New York, Nov. 8 - HSBC USA Inc. priced $1.28 million of 0% gold participation notes due Nov. 14, 2011 linked to the price of gold, according to a 424B2 with the Securities and Exchange Commission.
If the final price of gold is greater than the initial price of gold, the payout at maturity will be par plus the gold return. The return will be subject to a cap of 16%.
If the gold return is between zero and negative 15%, the payout will be par.
If the gold return is less than or equal to negative 15%, investors will share fully in any losses.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Participation notes
|
Underlying asset: | Gold
|
Amount: | $1.28 million
|
Maturity: | Nov. 14, 2011
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | If final gold price is greater than initial level, par plus return, capped at 16%; par for losses up to 15%; full exposure to any losses if gold breaches trigger
|
Initial price: | $1,395.50,
|
Trigger level: | $1,186.18, 85% of initial price
|
Pricing date: | Nov. 4
|
Settlement date: | Nov. 12
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 1%
|
Cusip: | 4042K07D1
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.