By Jennifer Chiou
New York, Jan. 12 - HSBC USA Inc. priced $11.65 million of 0% knock-out buffer notes due July 22, 2013 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 falls by more than 30% from the initial level 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, with full exposure to losses.
Otherwise, the payout will be par plus the greater of the index return and 5.5%.
HSBC Securities (USA) Inc. will be the underwriter, and J.P. Morgan Securities LLC is the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $11.65 million
|
| Maturity: | July 22, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index ever falls by more than 30% during life of notes, par plus index return, with exposure to losses; otherwise, par plus greater of return and 5.5%
|
| Initial level: | 1,292.08
|
| Pricing date: | Jan. 10
|
| Settlement date: | Jan. 13
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1.25%
|
| Cusip: | 4042K1VN0
|
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