Published on 3/27/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.85 million dual directional trigger PLUS on S&P, Russell
By Susanna Moon
Chicago, March 27 – HSBC USA Inc. priced $3.85 million of 0% dual directional trigger Performance Leveraged Upside Securities due March 25, 2019 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index finishes above its initial level, the payout at maturity will be par of $10 plus 112% of the gain of the worse performing index, up to a maximum return of 46.5%.
If either index falls by up to the 80% trigger level, the payout will be par plus the absolute value of the return of the worse performing index.
Otherwise, investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Dual directional trigger Performance Leveraged Upside Securities
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| Underlying indexes: | S&P 500 index and the Russell 2000 index
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| Amount: | $3,847,000
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| Maturity: | March 25, 2019
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If each index gains, par plus 112% of return of worse performing index, capped at 46.5%; if either index falls by up to 20%, par plus absolute value of return of worse performing index; otherwise, full exposure to any losses of worse performing index
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| Initial levels: | 2,373.47 for S&P and 1,384.096 for Russell
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| Trigger levels: | 1,898.78 for S&P and 1,107.277 for Russell, 80% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 23
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40435H640
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