By Angela McDaniels
Tacoma, Wash., Aug. 8 - HSBC USA Inc. priced $2 million of 0% capped knock-out buffer notes due Feb. 11, 2013 linked to the ordinary shares of Telefonica, SA, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if Telefonica shares close below 62% of the initial share price on any day during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the share return, which could be positive or negative. Otherwise, the payout will be par plus the greater of the share return and 15%.
In either case, the return at maturity will be capped at 20%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped knock-out buffer notes
|
| Underlying shares: | Telefonica, SA (Symbol: TEF)
|
| Amount: | $2 million
|
| Maturity: | Feb. 11, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If share price falls by more than 38% during life of notes, par plus share return, whether positive or negative; otherwise par plus greater of share return and 15%; return capped at 20% in each case
|
| Initial share price: | €14.685
|
| Pricing date: | Aug. 4
|
| Settlement date: | Aug. 9
|
| Agents: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (dealer)
|
| Fees: | 1.25%
|
| Cusip: | 4042K1MD2
|
© 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.
