By Kiku Steinfeld
Chicago, Oct. 14 – HSBC USA Inc. priced $518,000 of 0% barrier uncapped market participation securities due July 29, 2024 tied to the least performing of the Energy Select Sector SPDR fund and the Materials 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 2 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.
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Issue: | Barrier uncapped market participation securities
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Underlying funds: | Energy Select Sector SPDR fund, Materials Select Sector SPDR fund
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Amount: | $518,000
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Maturity: | July 29, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each fund finishes above its initial level, par plus 2 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
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Initial levels: | $48.70 for Energy, $81.16 for Materials
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Barrier levels: | 70% of initial levels
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Pricing date: | July 22
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Settlement date: | July 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40439JGE9
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