By Susanna Moon
Chicago, Aug. 24 - HSBC USA Inc. priced $1 million of 0% knock-out buffer notes due March 3, 2014 linked to the Canadian dollar relative to the U.S. dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the Canadian dollar falls by more than 10% relative to the U.S. dollar.
If a knock-out event does not occur, the payout will be par plus the greater of the currency return and the 3.5% contingent minimum return.
Otherwise, the payout at maturity will be par plus the currency return, with full exposure to losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying currency: | Canadian dollar against U.S. dollar
|
| Amount: | $1 million
|
| Maturity date: | March 3, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency falls by 10% or more, exposure to losses; otherwise, par plus any gain, floor of 3.5%
|
| Initial exchange rate: | 0.9930
|
| Pricing date: | Aug. 22
|
| Settlement date: | Aug. 29
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 4042K13M3
|
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