Published on 10/5/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.02 million income plus notes due 2022 on five stocks
By Marisa Wong
Morgantown, W.Va., Oct. 5 – HSBC USA Inc. priced $1.02 million of income plus notes due Sept. 30, 2022 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Ford Motor Co., International Business Machines Corp., UnitedHealth Group Inc., Verizon Communications Inc. and Walgreens Boots Alliance, Inc.
Interest rate will be 1% plus another 6.25% if each basket stock closes at or above its initial share price on the valuation date for that year. Interest is payable annually.
The payout at maturity will be par plus the last coupon payment.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Income plus notes
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| Underlying stocks: | Ford Motor Co., International Business Machines Corp., UnitedHealth Group Inc., Verizon Communications Inc. and Walgreens Boots Alliance, Inc.
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| Amount: | $1,019,000
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| Maturity: | Sept. 30, 2022
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| Coupon: | 7.25% if each basket stock closes at or above its initial share price on the valuation date for that year; otherwise 1%; payable annually
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| Price: | Par
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| Payout at maturity: | Par plus final coupon
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| Initial prices: | $13.53 for Ford, $145.42 for IBM, $116.37 for UnitedHealth, $44.22 for Verizon, $85.32 for Walgreens
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.025%
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| Cusip: | 40433B6J2
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