New Issue: HSBC prices $8.76 million trigger PLUS linked to SPDR S&P Oil & Gas ETF

By Marisa Wong

Morgantown, W.Va., Dec. 19 – HSBC USA Inc. priced $8.76 million of 0% trigger Performance Leveraged Upside Securities due July 3, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is positive, the payout at maturity will be par of $10 plus 300% of the ETF return, capped at $12.43 per PLUS. Investors will receive par if the ETF declines by 20% or less and will be fully exposed to the ETF’s decline from its initial share price if it falls by more than 20%.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Trigger Performance Leveraged Upside Securities
Underlying ETF:	SPDR S&P Oil & Gas Exploration & Production ETF
Amount:	$8,763,700
Maturity:	July 3, 2019
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final share price is greater than initial share price, par plus 300% of ETF return, capped at $12.43 per PLUS; if final share price is less than or equal to initial share price but greater than or equal to trigger price, par; if final share price is less than trigger price, exposure to decline from initial share price
Initial share price:	$34.08
Trigger level:	$27.264, 80% of initial share price
Pricing date:	Dec. 15
Settlement date:	Dec. 20
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	2.5%
Cusip:	40435J828

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