By Tali Rackner
Norfolk, Va., Dec. 23 – HSBC USA Inc. priced $5.39 million of 0% dual directional trigger Performance Leveraged Upside Securities due Dec. 21, 2018 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes above its initial level, the payout at maturity will be par of $10 plus 1.55 times any fund gain, capped at 30%.
If the fund falls by up to 30%, the payout will be par plus the absolute value of the return.
Otherwise, investors will be fully exposed to any losses if the fund declines below the 70% trigger.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Dual directional trigger Performance Leveraged Upside Securities
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| Underlying index: | S&P 500
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| Amount: | $5,394,000
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| Maturity: | Dec. 21, 2018
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If share price is greater than initial share price, par plus 1.55 times fund gain, capped at 30%; par plus absolute value of index return if fund declines by up to 30% trigger price; full exposure to decline from initial share price if final price is less than trigger
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| Initial share price: | $32.65
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| Trigger price: | $22.86, 70% of initial level
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| Pricing date: | Dec. 18
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| Settlement date: | Dec. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 40434K339
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