By Marisa Wong
Morgantown, W.Va., June 5 – HSBC USA Inc. priced $3.81 million of 0% trigger absolute return step securities due May 31, 2022 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF finishes at or above its initial level, the payout at maturity will be par of $10 plus the greater of the gain and the step return of 32.5%.
If the ETF falls by up to the 75% downside threshold level, the payout will be par plus the absolute value of the return.
Otherwise, investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger absolute return step securities
|
| Underlying ETF: | iShares MSCI EAFE ETF
|
| Amount: | $3,809,340
|
| Maturity: | May 31, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the ETF finishes at or above its initial level, par plus the greater of the gain and the step return of 32.5%; if the ETF falls by up to the downside threshold level, par plus the absolute value of the return; otherwise, investors will be fully exposed to any losses
|
| Initial price: | $66.24
|
| Downside threshold: | $49.68, 75% of initial level
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40435D623
|
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