By Jennifer Chiou
New York, Nov. 22 - HSBC USA Inc. priced $3.23 million of knock-out buffer notes due Dec. 5, 2012 linked to the S&P MidCap 400 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the index drops by more than 20% on the final valuation date: Nov. 30, 2012.
If a knock-out event occurs, the payout at maturity will be par plus the index return with exposure to losses.
Otherwise, the payout will be par plus any index gain, with a contingent minimum return of 7.5%.
The maximum payment at maturity will be par plus $1,200 for each $1,000 principal amount.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying index: | S&P MidCap 400
|
| Amount: | $3,234,000
|
| Maturity date: | Dec. 5, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index closes down by more than 20% on final valuation date, par plus return with exposure to losses; otherwise par plus any gain with floor of 7.5%; any gains capped at 20%
|
| Initial level: | 861.04
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Agents: | HSBC Securities (USA) Inc. (underwriter) and J.P. Morgan Securities LLC (distributor)
|
| Fees: | 1%
|
| Cusip: | 4042K1SY0
|
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