By Marisa Wong
Morgantown, W.Va., March 6 – HSBC USA Inc. priced $1.71 million of 0% barrier digital return notes due March 28, 2019 linked to the lesser performing of the iShares MSCI Emerging Markets exchange-traded fund and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
A trigger event will occur if either underlying closes below its barrier price, 65% of its initial price, on any day during the life of the notes.
If a trigger event has not occurred, the payout at maturity will be par plus the digital return of 10%.
If a trigger event has occurred but each underlying finishes at or above its initial price, the payout will be par.
Otherwise, investors will be fully exposed to the decline of the lesser performer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier digital return notes
|
| Underlying ETFs: | iShares MSCI Emerging Markets ETF, iShares MSCI EAFE ETF
|
| Amount: | $1,714,000
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| Maturity: | March 28, 2019
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If neither underlying ever closes below its barrier price during the life of the notes, par plus 10%; if either underlying closes below its barrier price during the life of the notes but each underlying finishes at or above its initial price, par; otherwise, investors will be fully exposed to the decline of the lesser performer
|
| Initial prices: | $49.72 for EM and $71.34 for EAFE
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| Barrier prices: | $32.32 for EM and $46.37 for EAFE; 65% of initial prices
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| Pricing date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
|
| Cusip: | 40435FUE5
|
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