By Susanna Moon
Chicago, Feb. 9 - HSBC USA Inc. priced $19.5 million of 0% knock-out buffer notes due Feb. 25, 2011 based on the iShares MSCI EAFE index fund, according to an FWP filing with the Securities and Exchange Commission.
A knock-out event occurs if the fund falls by more than the 25.2% buffer during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the fund return. Investors will be exposed to any losses.
If a knock-out event does not occur, the payout will be par plus the fund return, and investors will receive at least par.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying fund: | iShares MSCI EAFE index fund
|
| Amount: | $19.5 million
|
| Maturity: | Feb. 25, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund falls below buffer during life of notes, par plus fund return with exposure to losses; otherwise, par plus return and floor of par
|
| Initial level: | $50.13
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 10
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | None
|
| Cusip: | 4042K0Q40
|
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