By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $4.54 million of 0% dual directional trigger jump securities due April 3, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes at or above the initial price, the payout at maturity will be par of $10 plus the digital return of 60%.
If the fund falls but finishes at or above the 80% trigger level, the payout will be par plus the absolute value of the return.
If the fund falls by more than 20%, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is a distributor.
Issuer: | HSBC USA Inc.
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Issue: | Dual directional trigger jump securities
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Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production
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Amount: | $4.54 million
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Maturity: | April 3, 2019
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If fund gains, par plus greater of gain and 60%; par plus absolute value of fund return if fund falls by 20% or less; full exposure to any losses if fund finishes below downside threshold
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Initial price: | $30.35
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Downside threshold: | $24.28, 80% of initial price
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Pricing date: | March 31
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Settlement date: | April 5
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Wealth Management
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Fees: | 3%
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Cusip: | 40434N523
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