By Marisa Wong
Madison, Wis., May 28 – HSBC USA Inc. priced $7.06 million of 0% trigger performance securities due May 29, 2020 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10 plus 151% of any fund gain. The exact participation rate will be set at pricing.
If the fund finishes at or above the 75% trigger level, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger performance securities
|
| Underlying fund: | iShares MSCI EAFE ETF
|
| Amount: | $7,061,830
|
| Maturity: | May 29, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If fund return is positive, par plus 151% of fund return; par if fund falls by up to 25%; full exposure to losses from initial level if fund falls by more than 25%
|
| Initial level: | $66.75
|
| Trigger level: | $50.06, 75% of initial level
|
| Pricing date: | May 26
|
| Settlement date: | May 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434G320
|
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