By Susanna Moon
Chicago, Oct. 12 - HSBC USA Inc. priced $4.69 million of knock-out buffer notes due April 15, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the index ever drops by more than 39% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return with exposure to losses.
Otherwise, the payout will be par plus any index gain, with a floor of par.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the placement 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: | $4,685,000
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Maturity date: | April 15, 2013
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index ever closes below 61% of initial level, par plus return, with exposure to losses; otherwise par plus any gain, floor of par
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Initial level: | 1,155.46
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Pricing date: | Oct. 7
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Settlement date: | Oct. 13
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Agents: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (placement agent)
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Fees: | 1.25%
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Cusip: | 4042K1QC0
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