By Angela McDaniels
Tacoma, Wash., Aug. 28 – HSBC USA Inc. priced $6.62 million of 0% trigger performance securities due Aug. 31, 2020 linked to the iShares MSCI EAFE 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 149% of the ETF return.
If the ETF return is zero or negative and the ETF’s final level is greater than or equal to the trigger level, 75% of the initial level, the payout will be par.
If the final level is less than the trigger level, investors will be fully exposed to the decline in the ETF from its initial level.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger performance securities
|
| Underlying ETF: | iShares MSCI EAFE exchange-traded fund
|
| Amount: | $6,623,700
|
| Maturity: | Aug. 31, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If ETF return is positive, par plus 149% of ETF return; if ETF return is zero or negative and ETF’s final level is greater than or equal to trigger level, par; if final level is less than trigger level, full exposure to decline in ETF from its initial level
|
| Initial share price: | $59.78
|
| Trigger level: | $44.84, 75% of initial level
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434E556
|
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