By Toni Weeks
San Diego, June 28 - HSBC USA Inc. priced $1.72 million of 0% airbag performance securities due June 30, 2017 linked to the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the trust's return is positive, the payout at maturity will be par plus 109.5% of the return.
If the trust's return is zero or negative and its final price is greater than or equal to the conversion price, the payout will be par. The conversion price will be 50% of the initial price.
If the final price is less than the conversion price, the payout will be a number of trust shares equal to par divided by the conversion price.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Airbag performance securities
|
| Underlying fund: | SPDR S&P 500 ETF trust
|
| Amount: | $1,724,000
|
| Maturity: | June 30, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If return is positive, par plus 109.5% of the return; if return is zero or negative and final price is greater than or equal to the conversion price, par; if final price is less than conversion price, 15.15 shares
|
| Initial share price: | $132.00
|
| Conversion price: | $66.00, 50% of initial share price
|
| Pricing date: | June 26
|
| Settlement date: | June 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40433M625
|
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