By Toni Weeks
San Diego, March 27 - HSBC USA Inc. priced $600,000 of 0% capped knock-out buffer notes due April 10, 2013 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the closing share price falls by more than 22.2% from the initial price on the April 5, 2013 final valuation date.
If a knock-out event does not occur, the payout at maturity is par plus the contingent return of 10%.
If a knock-out event occurs, the payout at maturity will be par plus the stock return, with full exposure to losses.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped knock-out buffer notes
|
| Underlying stock: | Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $600,000
|
| Maturity: | April 10, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If closing share price is at least 77.8% of initial price on April 5, 2013, par plus 10%; if price falls by more than 22.2% on that date, par plus stock return with exposure to losses
|
| Initial price: | $33.53
|
| Knock-out buffer: | 22.2% of initial level
|
| Pricing date: | March 23
|
| Settlement date: | March 28
|
| Underwriter: | HSBC Securities (USA) Inc., with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as agents
|
| Fees: | 1%
|
| Cusip: | 4042K1A94
|
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