By Marisa Wong
Madison, Wis., April 24 – HSBC USA Inc. priced $2.5 million of knock-out barrier notes due May 9, 2016 linked to the performance of the Mexican peso relative to the dollar, according to a 424B2 with the Securities and Exchange Commission.
A knock-out event occurs if the peso depreciates against the dollar by more than 14.5%, as compared to the initial spot rate.
If a knock-out event has not occurred, the payout at maturity will be par plus the greater of the currency return and the 4% contingent minimum return.
Otherwise, the payout will be par plus the currency return with full exposure to any losses.
HSBC Securities (USA) Inc. is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank NA as placement agents.
Issuer: | HSBC USA Inc.
|
Issue: | Knock-out barrier notes
|
Underlying: | Mexican peso relative to dollar
|
Amount: | $2.5 million
|
Maturity: | May 9, 2016
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | If currency does not fall by more than 14.5%, par plus any currency gain, floor of 4%; otherwise, par plus return with full exposure to any losses
|
Initial spot rate: | 15.30825
|
Knock-out barrier: | 14.5%
|
Pricing date: | April 17
|
Trade date: | April 20
|
Settlement date: | April 23
|
Agents: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC and JPMorgan Chase Bank NA as placement agents
|
Fees: | 1%
|
Cusip: | 40433BU63
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.