By Angela McDaniels
Tacoma, Wash., May 11 - HSBC USA Inc. priced $5 million of 0% knock-out buffer notes due May 12, 2017 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's final level is less than 50% of the initial index level.
If a knock-out event does not occur, the payout at maturity will be par plus 145% of the index return, subject to a minimum payout of par.
If a knock-out event occurs, investors will be fully exposed to the decline of the index.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P 500
|
| Amount: | $5 million
|
| Maturity: | May 12, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index's final level is less than 50% of initial level, full exposure to decline; otherwise, par plus 145% of index return, subject to minimum payout of par
|
| Initial index level: | 1,354.58
|
| Pricing date: | May 9
|
| Settlement date: | May 14
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Dealer: | J.P. Morgan Securities LLC as agent
|
| Fees: | 3%
|
| Cusip: | 4042K1M75
|
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