Published on 9/21/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.82 million knock-out buffer notes linked to Mexican peso
By Angela McDaniels
Tacoma, Wash., Sept. 21 - HSBC USA Inc. priced $6.82 million of 0% knock-out buffer notes due Oct., 3, 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 15% on Sept. 26, 2013.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of 5.75% and the currency return. If a knock-out event occurs, investors will be fully exposed to the peso's depreciation.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying currency: | Mexican peso
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Amount: | $6.82 million
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Maturity: | Oct. 3, 2013
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If peso has depreciated, as compared to initial spot rate, by more than 15% on Sept. 26, 2013, full exposure to depreciation; otherwise, par plus greater of 5.75% and currency return
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Initial spot rate: | 12.8245 pesos per dollar
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Pricing date: | Sept. 19
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Settlement date: | Sept. 26
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Underwriter: | HSBC Securities (USA) Inc.
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Dealer: | J.P. Morgan Securities LLC
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Fees: | 1%
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Cusip: | 4042K15D1
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