By Susanna Moon
Chicago, Jan. 18 - HSBC USA Inc. priced $3 million of 0% knock-out buffer notes due Jan. 31, 2014 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 peso finishes below the 90% knock-out level.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of 6.1% and the currency return.
Otherwise, investors will be fully exposed to losses.
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: | $3 million
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Maturity: | Jan. 31, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If peso falls by more than 10%, full exposure to any losses; otherwise, par plus return, floor of 6.1%
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Initial spot rate: | 12.6378
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Pricing date: | Jan. 16
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Settlement date: | Jan. 24
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Underwriter: | HSBC Securities (USA) Inc.
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Dealer: | J.P. Morgan Securities LLC
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Fees: | 0.9%
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Cusip: | 40432XA43
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