By Toni Weeks
San Diego, Nov. 28 - HSBC USA Inc. priced $400,000 of buffered income plus notes due Nov. 30, 2016 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above its initial level on an annual coupon valuation date, the notes will pay a coupon of 6%, comprised of a performance-based coupon of 3.5% and a minimum coupon of 2.5%. Otherwise, the notes will pay the minimum rate of 2.5%. Interest is payable annually.
The payout at maturity will be par if the index falls by up to 20%.
Otherwise, investors will lose 1% for every 1% decline beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered income plus notes
|
| Underlying index: | Russell 2000
|
| Amount: | $400,000
|
| Maturity: | Nov. 30, 2016
|
| Coupon: | 2.5% or, if the index level on the coupon valuation date is at or above initial level, 6%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par if index falls by up to 20%; exposure to losses beyond 20%
|
| Initial level: | 809.02
|
| Pricing date: | Nov. 26
|
| Settlement date: | Nov. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 40432X2L4
|
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