By Jennifer Chiou
New York, Nov. 22 - HSBC USA Inc. priced $3 million of 0% knock-out buffer notes due Dec. 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 peso has depreciated by more than 25% from the initial spot rate on Nov. 28, 2012.
If a knock-out event occurs, the payout at maturity will be par plus the currency return. Otherwise, the payout will be par plus the greater of the currency return and 7.3%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Mexican peso
|
| Amount: | $3 million
|
| Maturity date: | Dec. 5, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If peso has depreciated on Nov. 28, 2012 by more than 25% compared to initial spot rate, par plus currency return; otherwise, par plus greater of currency return and 7.3%
|
| Initial exchange rate: | 13.725 pesos per dollar
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 28
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as distributor
|
| Fees: | 1%
|
| Cusip: | 4042K1TA1
|
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