By Angela McDaniels
Tacoma, Wash., Oct. 31 – HSBC USA Inc. priced $2.26 million of 0% trigger performance securities due Oct. 31, 2019 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 return is positive, the payout at maturity will be par of $10 plus 155% of the ETF return.
If the ETF return is zero or negative and the ETF’s final share price is equal to or greater than the trigger share price, 75% of the initial share price, the payout will be par.
If the final share price is less than the trigger share price, investors will be fully exposed to the decline in the ETF from its initial share price.
HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is acting as agent.
Issuer: | HSBC USA Inc.
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Issue: | Trigger performance securities
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Underlying ETF: | PowerShares S&P 500 Low Volatility Portfolio ETF
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Amount: | $2,260,700
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Maturity: | Oct. 31, 2019
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If ETF return is positive, par plus 155% of ETF return; if ETF return is zero or negative and ETF’s final share price is equal to or greater than trigger share price, par; if final share price is less than trigger share price, full exposure to decline in ETF from initial share price
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Initial share price: | $36.10
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Trigger price: | $27.08, 75% of initial share price
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Pricing date: | Oct. 28
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Settlement date: | Oct. 31
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | UBS Financial Services Inc.
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Fees: | 3.5%
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Cusip: | 40434D368
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