By Angela McDaniels
Tacoma, Wash., May 27 - HSBC USA Inc. priced $11.62 million of 0% trigger performance securities due May 31, 2016 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the iShares MSCI EAFE index fund with a 70% weight and the iShares MSCI Emerging Markets index fund with a 30% weight.
The payout at maturity will be par of $10 plus 110.36% of any increase in the basket. Investors will receive par if the basket falls by 45% or less and will be fully exposed to the decline if the basket falls beyond 45%.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger performance securities
|
| Underlying ETFs: | iShares MSCI EAFE index fund (70% weight) and iShares MSCI Emerging Markets index fund (30% weight)
|
| Amount: | $11,621,990
|
| Maturity: | May 31, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus 110.36% of any increase in basket; par if basket falls by 45% or less; full exposure to decline if basket falls beyond 45%
|
| Initial share prices: | $59.80 for EAFE and $46.66 for EM
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40433C833
|
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