Published on 9/13/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9.15 million knock-out buffer notes linked to S&P 500
By Marisa Wong
Madison, Wis., Sept. 13 - HSBC USA Inc. priced $9.15 million of 0% knock-out buffer notes due March 18, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the index's closing level falls by more than 22% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return, which could be positive or negative. Otherwise, investors will receive par plus the greater of the index return and 0%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the placement agent.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying index: | S&P 500
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Amount: | $9,153,000
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Maturity: | March 18, 2013
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index falls by more than 22% during life of notes, par plus index return with exposure to losses; otherwise, par plus greater of index return and 0%
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Initial index level: | 1,154.23
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Pricing date: | Sept. 9
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Settlement date: | Sept. 14
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Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
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Fees: | 1.25%
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Cusip: | 4042K1NK5
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