Published on 9/29/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $11.1 million leveraged buffered notes on index basket
By Marisa Wong
Morgantown, W.Va., Sept. 29 – HSBC USA Inc. priced $11.1 million of 0% leveraged buffered capped notes due Sept. 28, 2018 linked to a weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Topix index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.
If the basket return is positive, the payout at maturity will be par plus 1.5 times the basket gain, subject to a maximum settlement amount of $1,382.50 for each $1,000 principal amount.
If the basket return is at least negative 15%, the payout will be par.
If the basket return is less than negative 15%, investors will lose 1.1765% for every 1% decline beyond 15%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Leveraged buffered capped notes
|
| Underlying basket: | Euro Stoxx 50 index with a 37% weight, FTSE 100 index with a 23% weight, Topix index with a 23% weight, Swiss Market index with a 9% weight and S&P/ASX 200 index with an 8% weight
|
| Amount: | $11,096,000
|
| Maturity: | Sept. 28, 2018
|
| Coupon: | 0%
|
| Price: | Par of $1,000
|
| Payout at maturity: | If the basket return is positive, par plus 1.5 times gain, subject to a maximum settlement amount of $1,382.50 per note; if basket return is at least negative 15%, par; otherwise, 1.1765% loss for every 1% decline beyond 15%
|
| Initial levels: | 3,032.31 for Euro Stoxx, 6,909.43 for FTSE, 1,349.56 for Topix, 8,272.89 for Swiss Market and 5,431.297 for S&P/ASX
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40433UVR4
|
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