By Toni Weeks
San Luis Obispo, Calif., May 31 - HSBC USA Inc. priced $5 million of 0% buffered digital notes due Dec. 3, 2014 linked to the Russell 2000 index and the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each component finishes at or above its initial level, the payout at maturity will be par plus the fixed return of 14.1%.
Investors will receive par if the least-performing component falls by up to 20% and will lose 1.25% for each 1% decline in the least-performing component beyond the 20% buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered digital notes
|
| Underlying components: | Russell 2000 index and the iShares MSCI EAFE index fund
|
| Amount: | $5 million
|
| Maturity: | Dec. 3, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If each component finishes at or above initial level, par plus 14.1%; par if least-performing component falls by 20% or less; 1.25% loss per 1% decline of least-performing component beyond 20% buffer
|
| Initial levels: | 986.96 for Russell, $61.02 for EAFE fund
|
| Buffer level: | 20% of initial levels
|
| Pricing date: | May 29
|
| Settlement date: | June 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40432XGD7
|
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