By Angela McDaniels
Tacoma, Wash., July 31 – HSBC USA Inc. priced $2.26 million of 0% leveraged contingent buffered enhanced notes due Aug. 15, 2018 linked to the common stock of Costco Wholesale Corp., 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 15%.
If a knock-out event has not occurred, the payout at maturity will be par plus 125% of the stock return, subject to a minimum return of zero and a maximum return of 14%.
If a knock-out event has occurred, investors will lose 1% for every 1% that the stock declines from its initial share price.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Leveraged contingent buffered enhanced notes
|
| Underlying stock: | Costco Wholesale Corp. (Symbol: COST)
|
| Amount: | $2.26 million
|
| Maturity: | Aug. 15, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If knock-out event has not occurred, par plus 125% of stock return, subject to minimum return of zero and maximum return of 14%; if knock-out event has occurred, 1% loss for every 1% that stock declines from initial share price
|
| Knock-out event: | Final share price is less than initial share price by more than 15%
|
| Initial share price: | $152.89
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| Pricing date: | July 28
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| Settlement date: | Aug. 2
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| Underwriter: | HSBC Securities (USA) Inc.
|
| Agents: | JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40435FCP0
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