New Issue: HSBC sells $3.79 million trigger PLUS on Energy Select Sector SPDR

By Kiku Steinfeld

Chicago, May 18 – HSBC USA Inc. priced $3.79 million of 0% trigger Performance Leveraged Upside Securities due Nov. 14, 2022 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund return is positive, the payout at maturity will be par of $10 plus 150% of the ETF return, subject to a maximum return of 80%.

Investors will receive par if the fund declines by 10% or less and will be fully exposed to the fund’s decline from its initial share price if it falls by more than 10%.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Trigger Performance Leveraged Upside Securities
Underlying ETF:	Energy Select Sector SPDR fund
Amount:	$3,785,000
Maturity:	Nov. 14, 2022
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If the fund return is positive, par plus 150% of the ETF return, subject to a maximum return of 80%; par if the fund declines by 10% or less; full exposure to the fund’s decline from its initial share price if it falls by more than 10%
Initial price:	$38.78
Trigger price:	$34.902, 90% of initial price
Pricing date:	May 8
Settlement date:	May 13
Agent:	HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
Fees:	3%
Cusip:	40438J759

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