By Jennifer Chiou
New York, March 5 – HSBC USA Inc. priced $5 million of 0% barrier leveraged tracker notes due March 6, 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 return is greater than zero, the payout at maturity will be par plus 150% of the ETF return, capped at 32%.
Investors will receive par if the ETF falls by 25% or less and will be fully exposed to the ETF’s decline from its initial level if it falls by more than 25%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier leveraged tracker notes
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| Underlying ETF: | PowerShares S&P 500 Low Volatility Portfolio ETF
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| Amount: | $5 million
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| Maturity: | March 6, 2018
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If ETF return is greater than zero, par plus 150% of ETF return, capped at 32%; par if ETF falls by 25% or less; full exposure to ETF’s decline from initial level if it falls by more than 25%
|
| Initial share price: | $38.16
|
| Pricing date: | March 3
|
| Settlement date: | March 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433BG85
|
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