By Sarah Lizee
Olympia, Wash., May 31 – HSBC USA Inc. priced $4.21 million of 0% trigger gears securities due May 31, 2022 linked to an equally weighted basket made up of the Hang Seng China Enterprises index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the basket finishes above the initial level, the payout at maturity will be par plus the upside gearing of 1.465 times the gain.
If the basket falls but finishes at or above the 70% downside threshold level, the payout will be par.
If the basket falls by more than 30%, investors will lose 1% for each 1% decline of the index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger gears
|
| Underlying basket: | Hang Seng China Enterprises and Nikkei 225
|
| Amount: | $4.21 million
|
| Maturity: | May 31, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 1.465 times any basket gain; par if basket falls by up to 30%; otherwise, full exposure to losses
|
| Initial index levels: | 11,959.08 for Hang Seng, 22,358.43 for Nikkei
|
| Pricing date: | May 29
|
| Settlement date: | May 31
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 3%
|
| Cusip: | 40435M235
|
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