By Toni Weeks
San Luis Obispo, Calif., March 28 - HSBC USA Inc. priced $4.62 million of 0% airbag performance securities due March 29, 2018 linked to the PowerShares S&P 500 Low Volatility Portfolio exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund return is positive, the payout at maturity will be par plus 140.87% of the return.
If the fund return is zero or negative and the final share price is greater than or equal to the 75% threshold level, the payout will be par.
If the fund falls by more than 25%, investors will lose 1.3333% for every 1% decline in the fund beyond the 25% buffer.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Airbag performance securities
|
| Underlying index: | PowerShares S&P 500 Low Volatility Portfolio ETF
|
| Amount: | $4,619,000
|
| Maturity: | March 29, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund return is positive, par plus 140.87% of return; if return is zero or negative and greater than or equal to negative 25%, par; if final level is less than the 75% trigger level, 1.3333% loss for every 1% that fund declines beyond 25% buffer
|
| Initial price: | $30.76
|
| Pricing date: | March 26
|
| Settlement date: | March 28
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40433T166
|
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