By Toni Weeks
San Luis Obispo, Calif., Dec. 31 – HSBC USA Inc. priced $1.69 million of 0% trigger performance securities due Dec. 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.
The payout at maturity will be par of $10 plus 145% of any fund gain.
If the fund finishes at or above the trigger level, 75% of the initial level, the payout will be par.
Otherwise, investors will be fully exposed to the fund decline.
HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger performance securities
|
| Underlying fund: | PowerShares S&P 500 Low Volatility Portfolio ETF
|
| Amount: | $1,687,100
|
| Maturity: | Dec. 31, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 145% of any fund gain; par if fund falls by up to 25%; full exposure to any losses if fund finishes below trigger level
|
| Initial level: | $38.58
|
| Trigger level: | $28.94, 75% of initial level
|
| Pricing date: | Dec. 26
|
| Settlement date: | Dec. 31
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434F785
|
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