By Sarah Lizee
Olympia, Wash., Jan. 3 – HSBC USA Inc. priced $5.17 million of 0% dual directional trigger Performance Leveraged Upside Securities due Dec. 31, 2021 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the final share price is greater than or equal to the initial share price, the payout at maturity will be par of $10 plus 200% of the ETF return, subject to a maximum return of 49.25%.
If the final share price is less than the initial share price but greater than or equal to the trigger price, the payout will be par plus the absolute value of the ETF return. The trigger price is 80% of the initial share price.
If the final share price is less than the trigger price, investors will be exposed to the decline from the initial share price.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional trigger Performance Leveraged Upside Securities
|
| Underlying ETF: | Energy Select Sector SPDR fund
|
| Amount: | $5,168,640
|
| Maturity: | Dec. 31, 2021
|
| 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, subject to 49.25% cap; if final share price is less than or equal to initial share price but greater than or equal to trigger price, par plus absolute value of ETF return; if final share price is less than trigger price, exposure to decline from initial share price
|
| Initial share price: | $57.05
|
| Trigger level: | $45.64, 80% of initial share price
|
| Pricing date: | Dec. 28
|
| Settlement date: | Jan. 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3%
|
| Cusip: | 40436A685
|
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