Published on 4/16/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $13.93 million knock-out buffer notes on three currencies
By Marisa Wong
Madison, Wis., April 16 - HSBC USA Inc. priced $13.93 million of 0% knock-out buffer notes due Oct. 21, 2014 linked to the performance of a basket of currencies relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket currencies are the Brazilian real, the Chilean peso and the Mexican peso.
A knock-out event occurs if the basket has depreciated, compared to the initial basket level, by more than 15% at maturity.
If a knock-out event occurs, investors will be fully exposed to the basket's decline. Otherwise, the payout will be par plus the greater of the basket return and 9.1%.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as dealer.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying currencies: | Brazilian real, Chilean peso and Mexican peso, equally weighted and measured relative to dollar
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Amount: | $13,928,000
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Maturity: | Oct. 21, 2014
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Coupon: | 0%
|
Price: | Par
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Payout at maturity: | If basket has depreciated by more than 15% at maturity, full exposure to basket's decline; otherwise, par plus greater of basket return and 9.1%
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Initial spot rates: | 1.9761 for Brazilian real, 469.24 for Chilean peso, 12.0859 for Mexican peso
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Pricing date: | April 12
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Settlement date: | April 19
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Underwriter: | HSBC Securities (USA) Inc.
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Dealer: | J.P. Morgan Securities LLC
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Fees: | 1.25%
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Cusip: | 40432XEB3
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