Published on 5/29/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $975,000 autocallables linked to currencies versus yen
By Angela McDaniels
Tacoma, Wash., May 29 - HSBC USA Inc. priced $975,000 of 0% autocallable securities due June 3, 2015 linked to the performance of a basket of currencies relative to the Japanese yen, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of the Canadian dollar, the Mexican peso and the U.S. dollar. The basket return will be positive if the basket currencies, as a whole, strengthen relative to the yen.
The notes will be called at par plus an annualized call premium of 8.5% if the basket return is positive on Nov. 25, 2013, May 27, 2014, Nov. 25, 2014 or May 28, 2015.
If the notes are not called and the final basket return is greater than or equal to negative 10%, the payout at maturity will be par. Investors will be fully exposed to losses from the initial level if the final basket return is less than negative 10%.
HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as dealers.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable securities
|
| Underlying currencies: | Canadian dollar, Mexican peso and U.S. dollar, equally weighted and measured relative to Japanese yen
|
| Amount: | $975,000
|
| Maturity: | June 3, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if final basket return is greater than or equal to negative 10%; full exposure to losses from initial level if final basket return is less than negative 10%
|
| Call: | Automatically at par plus annualized call premium of 8.5% if basket return is positive on Nov. 25, 2013, May 27, 2014, Nov. 25, 2014 or May 28, 2015.
|
| Initial spot rates: | 98.0047 for Canadian dollar; 8.0954 for peso; 101.185 for U.S. dollar
|
| Pricing date: | May 24
|
| Settlement date: | June 3
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealers: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1.5%
|
| Cusip: | 40432XFN6
|
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