By Angela McDaniels
Tacoma, Wash., April 3 - HSBC USA Inc. priced $3 million of buffered accrual securities due April 5, 2018 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly. The interest payment per note will be $1,000 multiplied by the coupon rate divided by four. The coupon rate will be 5.5% multiplied by the proportion of days on which the index closes at or above the barrier level, which is 65% of the initial index level.
If the final index level is greater than or equal to the barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the index declines below the barrier level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered accrual securities
|
| Underlying index: | Euro Stoxx 50
|
| Amount: | $3 million
|
| Maturity: | April 5, 2018
|
| Coupon: | 5.5% per year multiplied by proportion of days on which index closes at or above barrier level; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than or equal to barrier level, par; otherwise, 1% loss for every 1% that index declines below barrier level
|
| Initial index level: | 2,477.28
|
| Barrier level: | 1,610.232, 65% of initial level
|
| Pricing date: | March 30
|
| Settlement date: | April 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 4042K1D26
|
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