New York, Nov. 25 – HSBC USA Inc. priced $5.31 million of contingent income Performance Leveraged Upside Securities due Nov. 25, 2019 linked to the Alerian MLP exchange-traded fund, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if the ETF closes at or above its initial price on the determination date for that quarter.
The payout at maturity will be par plus 200% of any positive fund return. If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent Income Performance Leveraged Upside Securities
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| Underlying ETF: | Alerian MLP exchange-traded fund (Symbol: AMLP)
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| Amount: | $5,307,000
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| Maturity: | Nov. 25, 2019
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| Coupon: | 9% annual rate payable quarterly if the ETF closes at or above its initial price on the determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par of $10 plus 200% of any gain in share price; full exposure to any loss
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| Initial share price: | $12.27
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| Pricing date: | Nov. 20
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| Settlement date: | Nov. 25
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as distributor
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| Fees: | 3%
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| Cusip: | 40434E333
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