By Toni Weeks
San Diego, Oct. 24 - HSBC USA Inc. priced $3.48 million of 0% knock-out buffer notes due Nov. 5, 2012 linked to the performance of the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the currency on the final valuation date has fallen by more than 25% from the initial spot rate.
If a knock-out event occurs, the payout at maturity will be par plus the currency return, with exposure to losses.
Otherwise, the payout will be par plus the greater of the currency return and 9.2%.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the placement agent.
Issuer: | HSBC USA Inc.
|
Issue: | Knock-out buffer notes
|
Underlying currency: | Mexican peso
|
Amount: | $3,478,000
|
Maturity date: | Nov. 5, 2012
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | If peso falls by more than 25% relative to dollar, full exposure to decline; otherwise, par plus greater of currency return and 9.2%
|
Initial exchange rate: | 13.7746
|
Pricing date: | Oct. 20
|
Settlement date: | Oct. 27
|
Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
Fees: | 1%
|
Cusip: | 4042K1QX4
|
© 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.