By Toni Weeks
San Diego, June 10 - HSBC USA Inc. priced $3.73 million of knock-out buffer notes due Dec. 13, 2012 linked to Telefonica, SA shares, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities LLC is the agent.
A knock-out event occurs if the initial price of Telefonica shares falls by more than 25% on the final valuation date.
If a knock-out event occurs, the payout at maturity will be par plus the stock return. Investors will be exposed to any losses.
Otherwise, the payout will be par plus the greater of the stock return and a contingent minimum return of 10%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying stock: | Telefonica, SA (Symbol:TEF)
|
| Amount: | $3.73 million
|
| Maturity date: | Dec. 13, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If initial price of stock falls by more than 25% on the final valuation date, par plus stock return; otherwise par plus greater of stock return and contingent minimum return of 10%
|
| Initial price: | €16.375
|
| Knock-out price: | €12.281, 75% of initial level
|
| Pricing date: | June 8
|
| Settlement date: | June 13
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 4042K1JX2
|
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