New Issue: HSBC sells $4.23 million dual directional trigger PLUS tied to Facebook

By Susanna Moon

Chicago, Aug. 19 – HSBC USA Inc. priced $4.23 million of 0% dual directional trigger Performance Leveraged Upside Securities due Sept. 6, 2018 linked to Facebook, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If the stock finishes above its initial level, the payout at maturity will be par of $10 plus 150% of the gain, up to a maximum return of 28.5%.

If the stock falls but finishes above its 80% trigger level, the payout will be par plus the absolute value of the return.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent with distribution through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Dual directional trigger Performance Leveraged Upside Securities
Underlying stock:	Facebook, Inc. (Symbol: FB)
Amount:	$4,226,840
Maturity:	Sept. 6, 2018
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If stock gains, par plus 150% of return, capped at 28.5%; if the stock falls by up to 20%, par plus absolute value of return; otherwise, full exposure to any losses
Initial share price:	$124.37
Trigger level:	$99.50, 80% of initial share price
Pricing date:	Aug. 17
Settlement date:	Aug. 22
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	2%
Cusip:	40434V251

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