By Toni Weeks
San Diego, June 19 - HSBC USA Inc. priced $3 million of 0% knock-out buffer notes due July 1, 2013 linked to the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the currency falls by more than 15% on the June 24, 2013 final valuation date.
If a knock-out event occurs, the payout at maturity will be par plus the currency return, with exposure to any losses.
Otherwise, the payout will be par plus the greater of the currency return and 9%.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Mexican peso
|
| Amount: | $3 million
|
| Maturity date: | July 1, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If peso falls by more than 15% relative to dollar on June 24, 2013, par plus return with exposure to losses; otherwise, par plus greater of currency return and 9%
|
| Initial exchange rate: | 13.91015
|
| Pricing date: | June 15
|
| Settlement date: | June 22
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 4042K1T78
|
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