By Jennifer Chiou
New York, July 25 - HSBC USA Inc. priced $3 million of 0% knock-out buffer notes due Jan. 8, 2013 linked to the performance of 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 peso has depreciated, as compared to the initial spot rate, by more than 9%.
If a knock-out event occurs, the payout at maturity will be par plus the currency return. Otherwise, the payout will be par plus the greater of the currency return and 2%.
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 currency: | Mexican peso
|
| Amount: | $3 million
|
| Maturity date: | Jan. 8, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If peso has depreciated by more than 9%, par plus currency return; otherwise, par plus greater of currency return and 2%
|
| Initial exchange rate: | 13.5622
|
| Pricing date: | July 23
|
| Settlement date: | July 30
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 0.5%
|
| Cusip: | 4042K1Z97
|
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