Published on 12/3/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $17.08 million Leveraged Index Return Notes on index basket
By Wendy Van Sickle
Columbus, Ohio, Dec. 3 – HSBC USA Inc. priced $17.08 million of 0% Leveraged Index Return Notes due Nov. 26, 2021 linked to a basket of unequally weighted indexes, according to a 424B2 filing 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 Hang Seng index with a 5% weight.
If the basket return is positive, the payout at maturity will be par plus 129.4% of the basket return.
If the basket falls by up to 10%, the payout will be par. Investors will lose 1% for each 1% basket decline beyond 10%.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged Index Return Notes
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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), Hang Seng (5% weight)
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Amount: | $17,079,400
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Maturity: | Nov. 26, 2021
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 129.4% of any basket gain; par if basket falls by up to 10%; 1% loss for every 1% decline beyond 10%
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Initial index levels: | 3,705.55 for Euro Stoxx 50; 7,403.14 for FTSE 100; 23,373.32 for Nikkei 225; 10,506.93 for Swiss Market; 6,787.53 for S&P/ASX 200; 26,913.92 for Hang Seng
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Pricing date: | Nov. 26
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Settlement date: | Dec. 4
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Agent: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40436B749
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