By Sarah Lizee
Olympia, Wash., Jan. 28 – HSBC USA Inc. priced $2 million of 0% market plus notes due Jan. 24, 2025 linked to the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the final share price is less than the initial share price by more than 40%.
If a knock-out event has not occurred, the payout at maturity will be par plus the greater of (a) 127% of the ETF return and (b) zero. If a knock-out event has occurred, investors will lose 1% for every 1% that the final share price is less than the initial share price.
HSBC Securities (USA) Inc. is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
Issuer: | HSBC USA Inc.
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Issue: | Market plus notes
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Underlying ETF: | iShares MSCI EAFE ETF
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Amount: | $2 million
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Maturity: | Jan. 24, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus greater of 127% of ETF return and zero unless ETF falls by more than 40%, in which case full exposure to ETF’s decline from initial share price
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Initial share price: | $69.79
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Knock-out level: | 60% of initial level
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Pricing date: | Jan. 23
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Settlement date: | Jan. 28
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Underwriter: | HSBC Securities (USA) Inc.
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Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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Fees: | 3%
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Cusip: | 40435U3K8
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