New Issue: HSBC prices $15 million trigger PLUS tied to iShares MSCI Emerging Markets

By Wendy Van Sickle

Columbus, Ohio, Feb. 21 – HSBC USA Inc. priced $8.76 million of 0% trigger Performance Leveraged Upside Securities due Aug. 21, 2019 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is positive, the payout at maturity will be par of $10 plus 200% of the ETF return, capped at $12.02 per PLUS. Investors will receive par if the ETF declines by 10% or less and will be fully exposed to the ETF’s decline from its initial share price if it falls by more than 10%.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Trigger Performance Leveraged Upside Securities
Underlying ETF:	iShares MSCI Emerging Markets ETF
Amount:	$15 million
Maturity:	Aug. 21, 2019
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final share price is greater than initial share price, par plus 200% of ETF return, capped at $12.02 per PLUS; if final share price is less than or equal to initial share price but greater than or equal to trigger price, par; if final share price is less than trigger price, exposure to decline from initial share price
Initial share price:	$49.45
Trigger level:	$44.586, 90% of initial share price
Pricing date:	Feb. 16
Settlement date:	Feb. 22
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	2.5%
Cusip:	40435M607

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