By Angela McDaniels
Tacoma, Wash., May 26 – HSBC USA Inc. priced $1.2 million of 0% leveraged contingent buffered enhanced notes due June 13, 2016 linked to the American Depositary Shares of Baidu, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the final share price is less than the initial share price by more than 10%.
If no knock-out event occurs, the payout at maturity will be par plus 200% of the stock return, subject to a minimum payout of par and a maximum return of 24.4%.
If a knock-out event occurs, investors will be fully exposed to the stock’s decline from its initial price.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged contingent buffered enhanced notes
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Underlying stock: | Baidu, Inc. (Symbol: BIDU)
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Amount: | $1,195,000
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Maturity: | June 13, 2016
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final share price is at least 90% of initial share price, par plus greater of zero and stock return, subject to 24.4% maximum return; otherwise, full exposure to stock’s decline
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Initial ADS price: $200.13
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Pricing date: | May 21
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Settlement date: | May 27
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | J.P. Morgan Securities LLC
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Fees: | 1.25%
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Cusip: | 40433BW87
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