New Issue: HSBC sells $14.55 million 15-month PLUS linked to Alerian MLP ETF

By Marisa Wong

Morgantown, W.Va., Nov. 6 – HSBC USA Inc. priced $14.55 million of 0% Performance Leveraged Upside Securities due Feb. 5, 2019 linked to the Alerian MLP exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus 300% of any fund gain, up to a maximum return of 45%.

Investors will be exposed to any losses.

HSBC Securities (USA) Inc. is the agent, with Morgan Stanley Wealth Management handling distribution.

Issuer:	HSBC USA Inc.
Issue:	Performance Leveraged Upside Securities
Underlying ETF:	Alerian MLP ETF
Amount:	$14,548,000
Maturity:	Feb. 5, 2019
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If ETF return is positive, par of $10 plus triple the ETF return, subject to a maximum payment of $14.50 per PLUS; full exposure to losses
Initial price:	$10.72
Pricing date:	Oct. 31
Settlement date:	Nov. 3
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	2.25%
Cusip:	40435H327

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