By Angela McDaniels
Tacoma, Wash., June 26 – HSBC USA Inc. priced $2 million of 0% market plus notes due June 27, 2022 linked to the iShares FTSE China Large-Cap exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the final share price is less than the initial share price by more than 47.5%.
If a knock-out event has not occurred, the payout at maturity will be par plus the greater of (a) 105% of the ETF return and (b) zero. If a knock-out event has occurred, investors will lose 1% for every 1% that the final share price is less than the initial share price.
HSBC Securities (USA) Inc. is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market plus notes
|
| Underlying ETF: | iShares FTSE China Large-Cap ETF
|
| Amount: | $2 million
|
| Maturity: | June 27, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus greater of 105% of ETF return and zero unless ETF falls by more than 47.5%, in which case full exposure to ETF’s decline from initial share price
|
| Initial share price: | $39.74
|
| Pricing date: | June 22
|
| Settlement date: | June 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 3%
|
| Cusip: | 40435FAR8
|
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