By Susanna Moon
Chicago, Sept. 13 - HSBC USA Inc. priced $4 million of 0% knock-out buffer notes due Sept. 26, 2012 linked to the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the fund falls by more than 30% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the fund return, with exposure to any losses.
Otherwise, investors will receive par plus the greater of the fund return and 10%.
In either case, the maximum return at maturity will be 30%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying fund: | iShares MSCI Brazil index fund
|
| Amount: | $3,995,000
|
| Maturity: | Sept. 26, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund ever falls by more than 30%, par plus return with exposure to losses; otherwise, par plus greater of fund return and 10%; return capped at 30% in each case
|
| Initial share price: | $60.95
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as dealer
|
| Fees: | 1%
|
| Cusip: | 4042K1NL3
|
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