By Susanna Moon
Chicago, April 30 - HSBC USA Inc. priced $2.31 million of 0% barrier notes with step-up digital return due May 12, 2014 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 more than 3%, the payout at maturity will be $1,275 per $1,000 principal amount of notes.
If the currency gains by 3% or less, the payout will be $1,050 per $1,000 principal amount of notes.
If the currency falls but finishes at or above the 85% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as 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 dollar
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Amount: | $2.31 million
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Maturity: | May 12, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If currency gains by more than 3%, par plus 27.5%; if currency gains by 3% or less, par plus 5%; if currency falls by up to 15%, par; otherwise, full exposure to any losses
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Initial spot rate: | 2.0001
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Pricing date: | April 26
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Settlement date: | May 3
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | J.P. Morgan Securities LLC
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Fees: | 1%
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Cusip: | 40432XEE7
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