By Toni Weeks
San Luis Obispo, Calif., March 28 - HSBC USA Inc. priced $8.68 million of 0% trigger performance securities due March 29, 2019 linked to the Vanguard FTSE Emerging Markets 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 of $10 plus 134% of the fund return.
If the fund return is zero or negative and the fund's final share price is equal to or greater than the trigger price, 75% of the initial price, the payout will be par.
If the final price is less than the trigger price, investors will be fully exposed to the decline in the fund from its initial price.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger performance securities
|
| Underlying fund: | Vanguard FTSE Emerging Markets ETF
|
| Amount: | $8,682,720
|
| Maturity date: | March 29, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus 134% of fund return if fund gains; par if fund falls by up to 25%; otherwise, full exposure to losses
|
| Initial share price: | $39.50
|
| Trigger price: | $29.63, 75% of the initial price
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434C501
|
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