By Toni Weeks
San Diego, June 28 - HSBC USA Inc. priced $26.17 million of knock-out buffer notes due Dec. 31, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are the agents.
A knock-out event occurs if the S&P 500 falls by more than 30% on any day during the life of the notes.
If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors will be exposed to any losses.
Otherwise, the payout will be par plus the index return, with a floor of par.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $26,171,000
|
| Maturity date: | Dec. 31, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If initial index level falls by more than 30% during the life of the notes, par plus index return, with exposure to losses; otherwise par plus index return, with minimum of par
|
| Initial level: | 1,268.45
|
| Knock-out buffer: | 30% of initial level
|
| Pricing date: | June 24
|
| Settlement date: | June 29
|
| Agents: | HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 4042K1KD4
|
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