New Issue: HSBC sells $1.92 million leveraged buffered notes on low-volatility ETF

By Marisa Wong

Madison, Wis., March 25 – HSBC USA Inc. priced $1.92 million of 0% leveraged buffered uncapped market participation securities due March 26, 2020 linked to the PowerShares S&P 500 Low Volatility Portfolio exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is greater than zero, the payout at maturity will be par plus 125% of the ETF return. Investors will receive par if the ETF falls by 15% or less and will lose 1% for every 1% that the ETF declines beyond 15%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Leveraged buffered uncapped market participation securities
Underlying ETF:	PowerShares S&P 500 Low Volatility Portfolio ETF
Amount:	$1,923,000
Maturity:	March 26, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 125% of any ETF gain; par if ETF falls by up to 15%; 1% loss for every 1% that ETF declines beyond 15%
Initial share price:	$38.54
Pricing date:	March 23
Settlement date:	March 26
Underwriter:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40433BE20

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