By William Gullotti
Buffalo, N.Y., Aug. 23 – HSBC USA Inc. priced $2.5 million of 0% barrier market participation securities due Aug. 29, 2023 tied to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF return is positive, the payout at maturity will be par plus the return, subject to a maximum payout of par plus 12.54%.
Investors will receive par if the ETF falls by up to 35%.
Otherwise, investors will be fully exposed to the ETF’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Barrier market participation securities
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Underlying fund: | SPDR S&P 500 ETF Trust
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Amount: | $2.5 million
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Maturity: | Aug. 29, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus any ETF gain up to 12.54%; par if ETF falls by up to 35%; otherwise, 1% loss for each 1% decline of ETF
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Initial level: | $426.65
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Strike date: | Aug. 17
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Pricing date: | Aug. 18
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Settlement date: | Aug. 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40441XJG6
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