By Marisa Wong
Morgantown, W.Va., March 31 – HSBC USA Inc. priced $2 million of contingent coupon buffered securities with trigger upside participation and downside participation due Sept. 28, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the index closes below its coupon trigger level, 80% of its initial level, on any trading day.
The notes will pay a contingent monthly coupon at an annual rate of 4% unless a knock-out event has occurred during any monthly observation period, in which case, no coupon will be paid that month or any subsequent month.
The payout at maturity will be par unless a knock-out event has occurred, in which case investors will either receive 1.25% for each 1% index return above negative 20% or lose 1.25% for each 1% decline beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent coupon buffered securities with trigger upside participation and downside participation
|
| Underlying index: | S&P 500 index
|
| Amount: | $2 million
|
| Maturity: | Sept. 28, 2021
|
| Coupon: | Contingent monthly coupon at an annual rate of 4% unless index closes below its coupon trigger level on any trading day during any monthly observation period, in which case, no coupon will be paid that month or any subsequent month
|
| Price: | Par
|
| Payout at maturity: | Par unless index closes below its coupon trigger level on any trading day during life of notes, in which case investors will either receive 1.25% for each 1% index return above negative 20% or lose 1.25% for each 1% decline beyond 20%
|
| Initial level: | 2,345.96
|
| Coupon trigger: | 1,876.768, 80% of initial level
|
| Pricing date: | March 23
|
| Settlement date: | March 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40433UZ33
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
