By Marisa Wong
Morgantown, W.Va., Oct. 25 – HSBC USA Inc. priced $4.32 million of 0% contingent buffered notes due Nov. 8, 2017 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the final price is less than the initial price by more than 65%.
If a knock-out event has not occurred, the payout at maturity will be par plus a digital return of 10%. Otherwise, the payout will be par plus the fund return with full exposure to losses.
HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent buffered notes
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| Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $4.32 million
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| Maturity: | Nov. 8, 2017
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 10% unless final price is less than the initial price by more than 65%, in which case par plus the fund return with full exposure to losses
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| Initial price: | $37.92
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| Pricing date: | Oct. 21
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| Settlement date: | Oct. 26
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| Underwriter: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 40433UXZ4
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