By Marisa Wong
Morgantown, W.Va., , March 27 – HSBC USA Inc. priced $1 million of 0% barrier notes with step-up digital return due March 22, 2019 linked to the Indian rupee relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The currency return is positive if the rupee strengthens relative to the dollar.
If the currency return is greater than or equal to 5%, the payout at maturity will be par plus the step-up return of 100%.
If the currency return is less than 5% but greater than or equal to zero, the payout will be par plus the digital return of 5%.
If the currency return is negative but not less than negative 10%, the payout will be par.
Otherwise, the payout will be par plus the currency return with full exposure to losses.
HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier notes with step-up digital return
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| Underlying currency: | Indian rupee, relative to dollar
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| Amount: | $1 million
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| Maturity: | March 22, 2019
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the currency return is greater than or equal to 5%, par plus 100%; if the currency return is less than 5% but greater than or equal to zero, par plus 5%; if the currency return is negative but not less than negative 10%, par; otherwise, par plus the currency return with full exposure to losses
|
| Initial spot rate: | 65.5411
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| Pricing date: | March 17
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| Settlement date: | March 22
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| Underwriter: | HSBC Securities (USA) Inc. with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
|
| Fees: | 1.5%
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| Cusip: | 40433UY91
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