By Susanna Moon
Chicago, May 25 - HSBC USA Inc. priced $19 million of 0% knock-out buffer notes due Dec. 10, 2010 based on 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 fund shares fall by more than the 30% buffer during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the fund return, up to a maximum return of 26% and exposure to any losses.
If a knock-out event does not occur, investors will receive par plus any fund gain, capped at 26% and subject to a minimum payout of par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying fund: | iShares MSCI Emerging Markets index fund
|
| Amount: | $19 million
|
| Maturity: | Dec. 10, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If shares fall by more than 30% during life of notes, par plus fund return with exposure to losses; otherwise, par plus any fund gain, with floor of par; in either case, cap of 26%
|
| Initial level: | $37.36
|
| Pricing date: | May 21
|
| Settlement date: | May 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 4042K02T1
|
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