By Angela McDaniels
Tacoma, Wash., June 27 - HSBC USA Inc. priced $3.54 million of 0% trigger return optimization securities due June 30, 2016 linked to a basket of two exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares MSCI EAFE index fund with a 70% weight and the iShares MSCI Emerging Markets index fund with a 30% weight.
The payout at maturity will be par of $10 plus 1.5 times any gain in the basket, up to a maximum return of 44.81%.
If the basket's final level is greater than or equal to the trigger level - 75% of the initial level - and less than or equal to the initial level, the payout will be par.
If the basket's final level is less than the trigger level, investors will be fully exposed to the decline from the initial level.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger return optimization securities
|
| Underlying ETFs: iShares MSCI EAFE index fund (70% weight) and iShares MSCI Emerging Markets index fund (30% weight)
|
| Amount: | $3,544,770
|
| Maturity: | June 30, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10.00 for brokerage accounts; $9.75 for advisory accounts
|
| Payout at maturity: | Par plus 1.5 times any basket gain, capped at 44.81%; par if basket finishes at or above 75% of initial level and at or below initial level; otherwise, full exposure to basket's decline
|
| Initial prices: | $57.75 for EAFE and $37.43 for EM
|
| Pricing date: | June 25
|
| Settlement date: | June 28
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 2.5% for brokerage accounts; none for advisory accounts
|
| Cusip: | 40433X621
|
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