Published on 1/3/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.18 million capped Leveraged Index Return Notes on index basket
By William Gullotti
Buffalo, N.Y., Jan. 3 – HSBC USA Inc. priced $6.18 million of 0% capped Leveraged Index Return Notes due Dec. 27, 2024 linked to a basket of unequally weighted indexes, according to a 424B2 filed with the Securities and Exchange Commission.
The basket components are the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the FTSE China 50 index with a 5% weight.
If the basket return is positive, the payout at maturity will be par of $10 plus 200% of the basket return, subject to a maximum payout of par plus 31.5%.
Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Capped Leveraged Index Return Notes
|
Underlying indexes: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei Stock Average (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight), FTSE China 50 (5% weight)
|
Amount: | $6,179,870
|
Maturity: | Dec. 27, 2024
|
Coupon: | 0%
|
Price: | Par of $10
|
Payout at maturity: | Par plus 200% of any basket gain, capped at par plus 31.5%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond 10%
|
Initial index levels: | 3,436.29 for Stoxx, 7,020.45 for FTSE, 26,171.25 for Nikkei, 10,453.31 for Swiss, 6,528.445 for S&P/ASX, 14,867.52 for FTSE China 50
|
Threshold level: | 90% of initial level
|
Pricing date: | Dec. 22
|
Settlement date: | Dec. 30
|
Agent: | BofA Securities, Inc.
|
Fees: | 2%
|
Cusip: | 40441B678
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.