By Susanna Moon
Chicago, Nov. 21 - HSBC USA Inc. priced $4.79 million of knock-out buffer notes due Dec. 5, 2012 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 35.75% 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 contingent minimum return of 10%.
The maximum payment at maturity will be par plus $1,100 for each $1,000 principal amount.
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 index: | S&P 500
|
| Amount: | $4,793,000
|
| Maturity date: | Dec. 5, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index ever closes down by more than 35.75%, par plus return, with exposure to losses; otherwise par plus any gain, floor of 10%; any gains capped at 10%
|
| Initial level: | 1,215.65
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Agents: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (placement agent)
|
| Fees: | 1%
|
| Cusip: | 4042K1ST1
|
© 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.
