By Toni Weeks
San Luis Obispo, Calif., Oct. 24 - HSBC USA Inc. priced $2.1 million of 0% buffered uncapped market participation securities with lock-in floor due Oct. 25, 2018 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
A lock-in event occurs if at any time on any trading day the index level has increased by a percentage that is greater than or equal to the lock-in floor.
The lock-in floor is 33% initially, but will bump up to 53% if the index is ever at least 153% of the initial level, to 73% if the index is ever at least 173% of the initial level, to 93% if the index is ever at least 193% of the initial level, to 113% if the index is ever at least 213% of the initial level, to 133% if the index is ever at least 233% of the initial level and to 153% if the index is ever at least 253% of the initial level.
If a lock-in event occurs, the payout at maturity will be par plus the greater of the lock-in floor and the index return.
If the index return is positive but a lock-in event does not occur, the payout will be par plus the index return.
If a lock-in event does not occur and the index return is negative, investors will receive par if the index falls by up to 10% and will be exposed to any losses beyond the 10% buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered uncapped market participation securities with lock-in floor
|
| Underlying index: | Euro Stoxx 50
|
| Amount: | $2.1 million
|
| Maturity date: | Oct. 25, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If a lock-in event occurs, par plus greater of index return and lock-in floor; if index return is positive but lock-in event does not occur, par plus index return; if lock-in event does not occur and index return is negative, par if index falls by up to 10% and exposure to any losses beyond the 10% buffer
|
| Initial index level: | 3,045.77
|
| Buffer level: | 10%
|
| Lock-in event: | A lock-in event occurs if at any time on any trading day the index level has increased by a percentage that is greater than or equal to the lock-in floor
|
| Lock-in floor: | Initially 33%, stepping up to 53% if index ever reaches 153% of initial level, to 73% if index ever reaches 173% of initial level, to 93% if index ever reaches 193% of initial level, to 113% if index is ever at least 213% of initial level, to 133% if index is ever at least 233% of initial level and to 153% if index is ever at least 253% of initial level
|
| Pricing date: | Oct. 22
|
| Settlement date: | Oct. 25
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40432XM99
|
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