By Toni Weeks
San Luis Obispo, Calif., Jan. 27 - HSBC USA Inc. priced $408,000 of buffered income notes due Jan. 28, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes above the initial level on any annual observation date, the coupon will be the performance-based coupon of 5.25%. Otherwise, the coupon will be the minimum rate of 2%. Interest will be payable annually.
If the index falls by up to 20%, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% decline beyond 20%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered income notes
|
| Underlying index: | Russell 2000
|
| Amount: | $408,000
|
| Maturity: | Jan. 28, 2019
|
| Coupon: | 5.25% if index closes above initial level; otherwise, 2%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par if index falls by up to 20%; otherwise, exposure to any losses beyond buffer
|
| Initial index level: | 1,172.4
|
| Buffer level: | 80% of initial level
|
| Pricing date: | Jan. 23
|
| Settlement date: | Jan. 28
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40432XRT0
|
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