By Toni Weeks
San Diego, March 29 - HSBC USA Inc. priced $3.34 million of buffered accrual securities due March 27, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will accrue at 6.5% for each day that the index closes at or above the 80% coupon barrier level. Interest is payable quarterly.
If the index finishes at or above the 80% coupon barrier level, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% decline beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered accrual securities
|
| Underlying index: | S&P 500
|
| Amount: | $3.34 million
|
| Maturity: | March 27, 2017
|
| Coupon: | 6.5% for each day that index closes at or above coupon barrier level; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par if index closes at or above coupon barrier level; otherwise 1% loss for every 1% decline beyond 20% buffer
|
| Initial index level: | 1,412.52
|
| Coupon barrier level: | 1,130.02, 80% of initial level
|
| Pricing date: | March 27
|
| Settlement date: | March 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 4042K1ZZ9
|
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