By Wendy Van Sickle
Columbus, Ohio, May 2 – HSBC USA Inc. priced $4.17 million of 0% trigger absolute return step securities due April 29, 2022 linked to the Vanguard FTSE Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF finishes at or above its initial level, the payout at maturity will be par of $10 plus the greater of the gain and the step return of 25.5%.
If the ETF falls by up to the 75% downside threshold level, the payout will be par plus the absolute value of the return.
Otherwise, investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger absolute return step securities
|
| Underlying ETF: | Vanguard FTSE Emerging Markets exchange-traded fund
|
| Amount: | $4,166,050
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| Maturity: | April 29, 2022
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the final ETF level is greater than or equal to the initial ETF level, par plus the greater of 25.5% and the return; if the final ETF level is less than the initial level but greater than or equal to the downside threshold level, par plus the absolute value of the ETF return; otherwise, investors will lose 1% for every 1% that the final ETF level is less than the initial ETF level
|
| Initial level: | $40.45
|
| Downside threshold: | $30.34, 75% of initial level
|
| Pricing date: | April 25
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| Settlement date: | April 28
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40435D755
|
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