By Marisa Wong
Madison, Wis., May 15 - HSBC USA Inc. priced $10.65 million of knock-out buffer notes due May 16, 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 final index level is less than the initial level by more than 50%.
If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors will be full exposed to losses.
Otherwise, the payout will be par plus the greater of 145% of the index return and the contingent minimum return of zero.
HSBC Securities (USA) Inc. is 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: | $10,647,000
|
| Maturity date: | May 16, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index finishes below 50% of initial level, par plus index return with full exposure to losses; otherwise par plus greater of 145% of index return and zero
|
| Initial level: | 1,353.39
|
| Pricing date: | May 11
|
| Settlement date: | May 16
|
| Underwriter: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (placement agent)
|
| Fees: | 3%
|
| Cusip: | 4042K1M26
|
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