HSBC to price contingent buffered notes linked to oil & gas ETF

By Marisa Wong

Morgantown, W.Va., Nov. 16 – HSBC USA Inc. plans to price 0% contingent buffered notes due Dec. 5, 2018 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP 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 24.3%.

If the ETF finishes at or above its initial price, the payout at maturity will be par plus the ETF return, capped at 10%.

If the ETF finishes below its initial price but a knock-out event has not occurred, the payout will be par plus the absolute value of the ETF return.

If a knock-out event has occurred, the payout will be par plus the ETF return, with full exposure to losses.

HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

The notes will price Nov. 17.

The Cusip number is 40435FMA2.

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