By Marisa Wong
Madison, Wis., July 2 – HSBC USA Inc. priced $25.27 million of 0% trigger jump securities due July 6, 2020 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is greater than the initial level, the payout at maturity will be par of $10 plus the greater of the index return and 34%.
If the final index level is less than or equal to the initial level and greater than or equal to the trigger level, the payout will be par. The trigger level is 60% of the initial index level.
If the final index level is less than the trigger level, investors will lose 1% for every 1% that the final index level is less than the initial level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger jump securities
|
| Underlying index: | S&P 500
|
| Amount: | $25,274,540
|
| Maturity: | July 6, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is greater than initial level, par plus greater of index return and 34%; if final index level is less than or equal to initial level and greater than or equal to trigger level, par; if final index level is less than trigger level, 1% loss for every 1% that final index level is less than initial level
|
| Initial index level: | 1,960.23
|
| Trigger level: | 1,176.14, 60% of initial level
|
| Pricing date: | June 30
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| Settlement date: | July 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 3.5%
|
| Cusip: | 40434C469
|
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