By Toni Weeks
San Diego, June 14 - HSBC USA Inc. priced $9.67 million of capped knock-out buffer notes due June 27, 2012 linked to the common stock of Dow Chemical Co., according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the closing share price falls by more than 30% from the initial price during the life of the notes.
If a knock-out event does not occur, the payout at maturity is par plus any gain in the stock, subject to a contingent minimum return of 11%.
If a knock-out event occurs, the payout at maturity is par plus the stock return, with full exposure to losses.
In either case, the maximum return is 20%, or $1,200 per $1,000 of notes.
J.P. Morgan Securities LLC will act as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped knock-out buffer notes
|
| Underlying stock: | Dow Chemical Co. (NYSE: DOW)
|
| Amount: | $9,672,000
|
| Maturity: | June 27, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If closing share price never falls below 70% of initial price, par plus stock return, with minimum return of 11%; if price falls by more than 25% during life of notes, par plus stock return with exposure to losses; maximum return of 20% in either case
|
| Initial price: | $35.07
|
| Knock-out buffer: | 30% of initial level
|
| Pricing date: | June 10
|
| Settlement date: | June 15
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 4042K1JW4
|
© 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.
