Published on 2/20/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.51 million trigger PLUS tied to KraneShares CSI China
By Sarah Lizee
Olympia, Wash., Feb. 20 – HSBC USA Inc. priced $6.51 million of 0% trigger Performance Leveraged Upside Securities due Feb. 17, 2023 linked to the KraneShares CSI China Internet ETF, 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 200% of the ETF return, capped at par plus 43%.
Investors will receive par if the ETF declines by 20% or less and will be fully exposed to the ETF’s decline from its initial share price if it falls by more than 20%.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
Issuer: | HSBC USA Inc.
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Issue: | Trigger Performance Leveraged Upside Securities
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Underlying ETF: | KraneShares CSI China Internet ETF
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Amount: | $6,514,300
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Maturity: | Feb. 17, 2023
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If final share price is greater than initial share price, par plus 200% of ETF return, capped at par plus 43%; if final share price is less than or equal to initial share price but greater than or equal to trigger price, par; if final share price is less than trigger price, exposure to decline from initial share price
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Initial share price: | $52.23
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Trigger level: | $41.78, 80% of initial share price
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Pricing date: | Feb. 14
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Settlement date: | Feb. 20
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Wealth Management
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Fees: | 3%
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Cusip: | 40438G300
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