By Marisa Wong
Madison, Wis., March 5 - HSBC USA Inc. priced $6.4 million of 0% twin participation notes due Sept. 6, 2013 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
A trigger event occurs if the exchange-traded fund's shares close below 70% of the initial share price on any day during the life of the notes.
If a trigger event has not occurred and the final share price is greater than the initial share price, the payout at maturity will be par plus the ETF gain, subject to a maximum return of 26%.
If a trigger event has not occurred and the final share price is less than or equal to the initial share price, the payout at maturity will be par plus the absolute value of the ETF return.
If a trigger event has occurred, investors will receive par plus the lesser of the fund return and 26%. In this case, the payout could be less than par.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Twin participation notes
|
Underlying ETF: | iShares MSCI Emerging Markets index fund
|
Amount: | $6,395,000
|
Maturity: | Sept. 6, 2013
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | If trigger event has not occurred and final price is greater than initial price, par plus ETF gain, return capped at 26%; if trigger event has not occurred and final price is less than or equal to initial price, par plus absolute value of ETF return; if trigger event has occurred, par plus lesser of fund return and 26%, with exposure to losses
|
Initial price: | $44.76
|
Trigger price: | $31.33, 70% of initial price
|
Pricing date: | March 1
|
Settlement date: | March 6
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 1.5%
|
Cusip: | 4042K1YN7
|
© 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.