By Toni Weeks
San Diego, Nov. 29 - HSBC USA Inc. priced $6.54 million of 0% airbag performance securities due March 5, 2018 linked to the S&P Low Volatility index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 106% of the return.
If the index return is zero or negative and its final level is greater than or equal to the 50% threshold percentage, the payout will be par.
If the final level is less than the threshold percentage, investors will lose 2% for every 1% decline in the index.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Airbag performance securities
|
| Underlying index: | S&P Low Volatility
|
| Amount: | $6,538,000
|
| Maturity: | March 5, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If return is positive, par plus 106% of the return; if return is zero or negative and final level is greater than or equal to threshold percentage, par; if final level is less than threshold percentage, 2% loss for every 1% decline in index
|
| Initial level: | 4,420.51
|
| Threshold percentage: | 50% of initial level
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
|
| Fees: | 3.5%
|
| Cusip: | 40433T653
|
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