Published on 4/3/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $695,000 knock-out buffer notes tied to Brazilian real
By Jennifer Chiou
New York, April 3 - HSBC USA Inc. priced $695,000 of 0% knock-out buffer notes due April 14, 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 April 7, 2014.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of 8.5% 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: | $695,000
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Maturity: | April 14, 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 April 7, 2014, full exposure to depreciation; otherwise, par plus greater of 8.5% and currency return
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Initial spot rate: | 2.0138 reais per dollar
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Pricing date: | March 28
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Settlement date: | April 5
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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: | 40432XD65
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