By Marisa Wong
Milwaukee, Feb. 5 - HSBC USA Inc. priced 0% knock-out buffer notes due Feb. 22, 2011 based on the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
A knock-out event occurs if the index falls by more than the buffer amount of 19% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors will be exposed to any losses.
If a knock-out event does not occur, the payout will be par plus the index return, with a floor of zero.
J.P. Morgan Securities Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying index: | S&P 500
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Amount: | $31 million
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Maturity: | Feb. 22, 2011
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index falls below 81% of initial level during life of notes, par plus basket return; otherwise, par plus basket return, with floor of zero
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Initial level: | 1,103.32
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Pricing date: | Feb. 2
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Settlement date: | Feb. 5
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 1%
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Cusip: | 4042K0P82
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