By Marisa Wong
Madison, Wis., July 17 - HSBC USA Inc. priced $2 million of 0% knock-out buffer notes due Jan. 17, 2014 linked to Telefonica, SA shares, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if Telefonica stock finishes below the 75% trigger level.
If the shares finish at or above the knock-out level, the payout at maturity will be par plus the greater of the index return and the contingent minimum return of 17%.
Otherwise, the payout at maturity will be par plus the return, with full exposure to losses.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying stock: | Telefonica, SA (Symbol: TEF)
|
| Amount: | $2 million
|
| Maturity: | Jan. 17, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above knock-out level, par plus any gain, floor of 17%; otherwise, full exposure to losses
|
| Initial price: | €9.964
|
| Knock-out buffer: | 25% of initial level
|
| Pricing date: | July 13
|
| Settlement date: | July 18
|
| Underwriter: | HSBC Securities (USA) Inc., with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
|
| Fees: | 1%
|
| Cusip: | 4042K1Y72
|
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