By Angela McDaniels
Tacoma, Wash., June 21 – HSBC USA Inc. priced $3.7 million of 0% dual directional trigger Performance Leveraged Upside Securities due June 21, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is greater than the initial index level, the payout at maturity will be par of $10 plus 150% of the index return, subject to a maximum return of 18.18%.
If the final index level is less than or equal to the initial index level but greater than or equal to the trigger level, the payout will be par plus the absolute value of the index return. The trigger level is 85% of the initial index level.
If the final index level is less than the trigger level, investors will be exposed to the decline from the initial index level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional trigger Performance Leveraged Upside Securities
|
| Underlying index: | S&P 500
|
| Amount: | $3.7 million
|
| Maturity: | June 21, 2018
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is greater than initial index level, par plus 150% of index return, up to 18.18% maximum return; if final index level is less than or equal to initial index level but greater than or equal to trigger level, par plus absolute value of index return; if final index level is less than trigger level, exposure to decline from initial index level
|
| Initial index level: | 2,071.22
|
| Trigger level: | 1,760.54, 85% of initial level
|
| Pricing date: | June 17
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| Settlement date: | June 22
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40434V640
|
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