By Angela McDaniels
Tacoma, Wash., Aug. 2 – HSBC USA Inc. priced $8.65 million of 1.68% trigger income securities with upside participation due Aug. 3, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final index level is greater than the initial index level, the payout at maturity will be par of $10 plus the index return.
If the final index level is less than or equal to the initial index level but greater than or equal to the trigger level, 50% of the initial index level, the payout will be par.
If the final index level is less than the trigger level, investors will lose 1% for every 1% that the final index level is less than the initial index level.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger income securities
|
| Underlying index: | S&P 500
|
| Amount: | $8,646,250
|
| Maturity: | Aug. 3, 2023
|
| Coupon: | 1.68%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any index gain; par if index falls by up to 50%; full exposure to decline from initial level if index finishes below trigger level
|
| Initial index level: | 2,173.60
|
| Trigger level: | 1,086.80, 50% of initial level
|
| Pricing date: | July 29
|
| Settlement date: | Aug. 3
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3.5%
|
| Cusip: | 40434V418
|
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