By Susanna Moon
Chicago, May 31 - HSBC USA Inc. priced $2.3 million of 0% trigger autocallable optimization securities due May 31, 2017 linked to the SPDR S&P 500 exchange-traded fund trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the shares close at or above the initial price on any quarterly observation date after one year, the notes will be called at par plus an annualized call return of 9%.
If the notes are not called and the shares finish at or above the 70% trigger level, the payout at maturity will be par.
Otherwise, investors will share fully in losses.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable optimization securities
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Underlying fund: | SPDR S&P 500 exchange-traded fund trust
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Amount: | $2,304,500
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Maturity: | May 31, 2017
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If final price is at least trigger level, par; otherwise, full exposure to losses
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Call: | At par plus 9% per year if shares close at or above initial level on any quarterly observation date after one year
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Initial price: | $133.70
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Trigger price: | $93.59, 70% of initial price
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Pricing date: | May 29
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Settlement date: | May 31
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Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
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Fees: | 2.5%
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Cusip: | 40433M690
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