By Angela McDaniels
Tacoma, Wash., July 2 - HSBC USA Inc. priced $8.47 million of 0% airbag performance securities due July 5, 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 ETF's return is positive, the payout at maturity will be par plus 114% of the return.
If the ETF's return is zero or negative but greater than or equal to negative 30%, the payout will be par.
If the ETF's return is less than negative 30%, investors will lose 1.4286% for every 1% that the return is less than negative 30%.
HSBC Securities (USA) LLC is the underwriter. UBS Financial Services Inc. is acting as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Airbag performance securities
|
| Underlying ETF: | PowerShares S&P 500 Low Volatility Portfolio ETF
|
| Amount: | $8,471,000
|
| Maturity: | July 5, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If ETF's return is positive, par plus 114% of ETF's return; if ETF's return is zero or negative but greater than or equal to negative 30%, par; otherwise, 1.4286% loss for every 1% that ETF's return is less than negative 30%
|
| Initial share price: | $31.12
|
| Pricing date: | June 28
|
| Settlement date: | July 3
|
| Underwriter: | HSBC Securities (USA) LLC
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40433X563
|
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