By Angela McDaniels
Tacoma, Wash., Sept. 2 – HSBC USA Inc. priced $6.41 million of 0% dual directional trigger Performance Leveraged Upside Securities due Sept. 6, 2018 linked to the common stock of Facebook Inc., 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 150% of the stock return, subject to a maximum return of 27%.
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 stock 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
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| Underlying stock: | Facebook Inc. (Symbol: FB)
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| Amount: | $6,409,390
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| Maturity: | Sept. 6, 2018
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| Coupon: | 0%
|
| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than initial share price, par plus 150% of stock return, subject to 27% 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 stock return; if final share price is less than trigger price, exposure to decline from initial share price
|
| Initial share price: | $126.12
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| Trigger level: | $100.90, 80% of initial share price
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40434V137
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