By Devika Patel
Knoxville, Tenn., Dec. 31 – HSBC USA Inc. priced $55,000 of 0% dual directional buffered notes due June 30, 2021 linked to the lesser performing of the Energy Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus any gain of the lesser performing asset, capped at par plus 24%.
If either asset falls but the lesser performer declines by no more than the 19% buffer amount, then the payout at maturity will be par plus the absolute value of the return of the lesser performing asset.
If the lesser performing asset declines by more than 19%, then the payout will be par less the loss of that asset beyond 19%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional buffered notes
|
| Underlying assets: | Energy Select Sector SPDR fund and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $55,000
|
| Maturity: | June 30, 2021
|
| Coupon: | 0%
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus any gain of lesser-performing asset capped at par plus 24%; if lesser-performing asset falls by up to 19%, par plus absolute value of its return; otherwise, exposure to losses of lesser-performing asset beyond 19%
|
| Initial values: | $23.22 for energy and $61.36 for oil
|
| Buffer levels: | $18.8082 for energy and $49.7016 for oil, 81% of initial levels
|
| Pricing date: | Dec. 20
|
| Settlement date: | Dec. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435UQ49
|
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