By Jennifer Chiou
New York, Nov. 8 - HSBC USA Inc. priced $2.07 million of knock-out buffer notes due Nov. 21, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the index ever drops by more than 30% during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return with exposure to losses.
Otherwise, the payout will be par plus the contingent minimum return of 10%.
The maximum payment at maturity will be par plus $1,100 for each $1,000 principal amount.
HSBC Securities (USA) Inc. is the underwriter, with J.P. Morgan Securities LLC as the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $2,066,000
|
| Maturity date: | Nov. 21, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index ever closes below 70% of initial level, par plus return, with exposure to losses and any gains capped at 10%; otherwise par plus 10%
|
| Initial level: | 1,253.23
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 9
|
| Agents: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (distributor)
|
| Fees: | 1%
|
| Cusip: | 4042K1RQ8
|
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