Published on 6/1/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $28.77 million market-linked step-up notes on index basket
By Toni Weeks
San Luis Obispo, Calif., June 1 – HSBC USA Inc. priced $28.77 million of market-linked step-up notes due May 26, 2017 linked to a basket comprised of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index and the Nikkei 225 index each with a 20% weight and the S&P/ASX 200 index and Swiss Market index each with a 7.5% weight and the Hang Seng index with a 5% weight, according to a 424B2 filing with the Securities and Exchange Commission.
If the basket finishes above the step-up value – 113.1% of the initial level – the payout at maturity will be par of $10.00 plus the basket gain.
If the basket gains by up to the step-up level, the payout will be par plus the step-up payment of 13.1%.
Investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Market-linked step-up notes
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Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei 225 index (20% weight), S&P/ASX 200 index (7.5% weight), Swiss Market index (7.5% weight) and Hang Seng index (5% weight)
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Amount: | $28,771,020
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Maturity: | May 26, 2017
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If basket finishes above step-up value, par plus basket gain; if basket gains by up to step-up level, par plus 13.1%; otherwise, exposure to any losses
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Initial basket level: | 100
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Step-up value: | 113.1% of initial level
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Pricing date: | May 28
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Settlement date: | June 4
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Underwriter: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40434G387
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