By Toni Weeks
San Diego, Feb. 16 - HSBC USA Inc. priced $5 million of knock-out buffer notes due May 17, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the agent.
A knock-out event occurs if the S&P 500 falls by more than 28% 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, with a floor of par.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $5 million
|
| Maturity date: | May 17, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index falls by more than 28% during the life of the notes, par plus index return, with full exposure to losses; otherwise par plus index return, floor of par
|
| Initial level: | 1,350.5
|
| Knock-out buffer: | 28% of initial level
|
| Pricing date: | Feb. 14
|
| Settlement date: | Feb. 17
|
| Underwriter: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (agent)
|
| Fees: | 1.1%
|
| Cusip: | 4042K1XQ1
|
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