By Jennifer Chiou
New York, April 3 - HSBC USA Inc. priced $395,000 of 0% return enhanced notes due April 16, 2014 linked to the Hang Seng China Enterprises index and the deliverable Chinese renminbi relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus double any gain in the average composite return, up to a maximum return of 35%.
Otherwise, investors will be fully exposed to losses.
The average composite return will be the average of the product of (i) the final index level multiplied by (ii) the currency return on the five trading days ending April 11, 2014.
HSBC Securities (USA) Inc. is the agent, with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Return enhanced notes
|
| Underlying index: | S&P 500
|
| Amount: | $395,000
|
| Maturity: | April 16, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus double any gain in the average composite return, capped at 35%; full exposure to losses
|
| Initial index level: | 10,896.22
|
| Initial spot rate: | 6.2083
|
| Initial underlying level: | Initial index level times initial currency rate
|
| Average composite return: | Average of product of final index level times currency return on five trading days ending April 11, 2014
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XD81
|
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