By Wendy Van Sickle
Columbus, Ohio, May 14 – HSBC USA Inc. priced $1.16 million of 0% barrier uncapped market participation securities due April 30, 2024 tied to the least performing of the Industrial Select Sector SPDR fund, the Materials Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the return of each fund is positive, the payout at maturity will be par plus 1.4 times the return of the least-performing fund
Investors will receive par if any fund falls by up to 30%.
Otherwise, investors will be fully exposed to the least-performing fund’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier uncapped market participation securities
|
| Underlying funds: | Industrial Select Sector SPDR fund, Materials Select Sector SPDR fund and Financial Select Sector SPDR fund
|
| Amount: | $1,156,000
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| Maturity: | April 30, 2024
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If each fund finishes above its initial level, par plus 1.4 times the increase of least-performing fund; par if any fund falls by up to 30%; otherwise, full exposure to least-performing fund’s decline
|
| Initial levels: | $102.10 for Industrial, $83.18 for Materials and $35.80 for Financial
|
| Barrier levels: | 70% of initial levels
|
| Pricing date: | April 27
|
| Settlement date: | April 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438C5F4
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