By Angela McDaniels
Tacoma, Wash., April 3 - HSBC USA Inc. priced $3.1 million of buffered accrual securities due April 5, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly. The interest payment per note will be $1,000 multiplied by the coupon rate divided by four. The coupon rate will be 5.6% multiplied by the proportion of days on which the index closes at or above the barrier level, which is 70% of the initial index level.
If the final index level is greater than or equal to the barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the index declines below the barrier level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered accrual securities
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Underlying index: | S&P 500
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Amount: | $3.1 million
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Maturity: | April 5, 2018
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Coupon: | 5.6% per year multiplied by proportion of days on which index closes at or above barrier level; payable quarterly
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Price: | Par
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Payout at maturity: | If final index level is greater than or equal to barrier level, par; otherwise, 1% loss for every 1% that index declines below barrier level
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Initial index level: | 1,408.47
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Barrier level: | 985.929, 70% of initial level
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Pricing date: | March 30
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Settlement date: | April 4
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3%
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Cusip: | 4042K1D34
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