A story in the Jan. 29 edition of the Prospect News Structured Products Daily misstated the trigger level for HSBC’s trigger return optimization securities tied to the S&P 500 index and incorrectly identified the index in the headline. A corrected version of the story follows.
By Susanna Moon
Chicago, Jan. 29 – HSBC USA Inc. priced $5.23 million of 0% trigger return optimization securities due Jan. 31, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10 plus 2 times any index gain, up to a maximum return of 39.5%.
If the index falls by up to the trigger level, 80% of the initial level, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger return optimization securities
|
| Underlying index: | S&P 500
|
| Amount: | $5,233,330
|
| Maturity: | Jan. 31, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 200% of any index gain, capped at 39.5%; par if index falls by up to 20%; full exposure to any losses if index finishes below trigger level
|
| Initial index level: | 1,903.63
|
| Trigger level: | 1,522.90, 80% of initial level
|
| Pricing date: | Jan. 26
|
| Settlement date: | Jan. 29
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40434K172
|
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