By Jennifer Chiou
New York, March 18 – HSBC USA Inc. priced $2 million of 0% barrier leveraged tracker notes due March 21, 2022 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 175% of the ETF return.
Investors will receive par if the ETF falls by 40% or less and will be fully exposed to the ETF’s decline from its initial level if it falls by more than 40%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Barrier leveraged tracker notes
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| Underlying ETF: | PowerShares S&P 500 Low Volatility Portfolio ETF
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| Amount: | $2 million
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| Maturity: | March 21, 2022
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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 175% of ETF return; par if ETF falls by 40% or less; full exposure to ETF’s decline from initial level if it falls by more than 40%
|
| Initial share price: | $37.87
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| Pricing date: | March 16
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| Settlement date: | March 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40433BH92
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