By Angela McDaniels
Tacoma, Wash., Oct. 29 – HSBC USA Inc. priced $3.06 million of 0% trigger performance securities due Oct. 30, 2020 linked to the Vanguard FTSE Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF return is positive, the payout at maturity will be par of $10 plus 130% of the ETF return.
If the ETF return is zero or negative and the final share price is greater than or equal to the trigger share price, 75% of the initial share price, the payout will be par.
If the final share price is less than the trigger share price, investors will be fully exposed to the decline in the ETF from its initial share price.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger performance securities
|
| Underlying ETF: | Vanguard FTSE Emerging Markets ETF
|
| Amount: | $3,059,580
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If ETF return is positive, par plus 130% of ETF return; par if ETF falls by up to 25%; full exposure to losses from initial share price if ETF falls by more than 25%
|
| Initial share price: | $35.67
|
| Trigger share price: | $26.75, 75% of initial share price
|
| Pricing date: | Oct. 27
|
| Settlement date: | Oct. 30
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434K743
|
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