By Susanna Moon
Chicago, March 18 - HSBC USA Inc. priced $5.95 million of 0% barrier notes due March 27, 2014 with step-up digital return linked to the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
If the currency return is greater than 3%, the payout at maturity will be $1,285 for each $1,000 principal amount of notes.
If the currency gains by up to 3%, the payout will be $1,050 per $1,000 of notes.
If the currency finishes at or above the 85% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as the agent.
Issuer: | HSBC USA Inc.
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Issue: | Barrier notes with step-up digital return
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Underlying currency: | Brazilian real relative to the dollar
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Amount: | $5.95 million
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Maturity: | March 27, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 28.5% if currency gains by more than 3%; par plus 5% if currency gains by up to 3%; par if currency falls by 15% or less; otherwise, full exposure to losses
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Initial spot rate: | 1.9619
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Pricing date: | March 13
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Settlement date: | March 20
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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: | 40432XD32
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