By Angela McDaniels
Tacoma, Wash., Jan. 30 - HSBC USA Inc. priced $7.12 million of 0% trigger return optimization securities due Jan. 29, 2016 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 ETF trust with a 40% weight, the iShares MSCI EAFE index fund with a 40% weight and the iShares MSCI Emerging Markets index fund with a 20% weight.
If the basket return is positive, the payout at maturity will be par plus 1.5 times the basket return, subject to a maximum return of 33.4%.
If the basket return is zero or negative and the final basket level is greater than or equal to the trigger level, the payout will be par. The trigger level is 70% of the initial level.
If the final basket level is less than the trigger level, investors will be fully exposed to the basket's decline from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger return optimization securities
|
| Underlying ETFs: SPDR S&P 500 ETF trust (40% weight), iShares MSCI EAFE index fund (40% weight) and iShares MSCI Emerging Markets index fund (20% weight)
|
| Amount: | $7,119,490
|
| Maturity: | Jan. 29, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10.00 for brokerage accounts; $9.75 for advisory accounts
|
| Payout at maturity: | If basket return is positive, par plus 1.5 times basket return, subject to maximum return of 33.4%; if basket return is zero or negative and final basket level is greater than or equal to trigger level (70% of initial level), par; if final basket level is less than trigger level, full exposure to basket's decline from initial level
|
| Initial share prices: | $150.07 for SPDR S&P 500, $58.74 for iShares MSCI EAFE and $43.85 for iShares MSCI Emerging Markets
|
| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5% for brokerage accounts; zero for advisory accounts
|
| Cusip: | 40433T463
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