Published on 2/20/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.06 million knock-out buffer notes tied to Brazilian real
By Angela McDaniels
Tacoma, Wash., Feb. 20 - HSBC USA Inc. priced $3.06 million of 0% knock-out buffer notes due March 4, 2014 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the real has depreciated, as compared to the initial spot rate, by more than 10% on Feb. 25, 2014.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of 7.15% and the currency return. If a knock-out event occurs, investors will be fully exposed to the real'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: | Brazilian real
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Amount: | $3,055,000
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Maturity: | March 4, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If real has depreciated, as compared to initial spot rate, by more than 10% on Feb. 25, 2014, full exposure to depreciation; otherwise, par plus greater of 7.15% and currency return
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Initial spot rate: | 1.96 reais per dollar
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Pricing date: | Feb. 15
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Settlement date: | Feb. 25
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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: | 40432XBG5
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