Published on 2/26/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $7.23 million leveraged market-linked step-up notes on index basket
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – HSBC USA Inc. priced $7.23 million of leveraged market-linked step-up notes due Aug. 27, 2020 linked to a global equity basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of 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 finishes above the step-up value, 125% of the initial level, the payout at maturity will be par of $10 plus 216% of 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 25%.
Investors will be fully exposed to any basket decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Leveraged market-linked step-up notes
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| Underlying basket: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
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| Amount: | $7,228,100
|
| Maturity: | Aug. 27, 2020
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If the basket finishes above the step-up value, par plus 216% of the basket gain; if the basket gains by up to the step-up level, par plus the step-up payment of 25%; otherwise, investors will be fully exposed to any basket decline
|
| Initial levels: | 3,431.99 for Euro Stoxx 50; 7,252.39 for FTSE 100; 21,736.44 for Nikkei 225; 8,967.43 for Swiss Market; 5,950.881 for S&P/ASX 200; 30,965.68 for Hang Seng
|
| Pricing date: | Feb. 22
|
| Settlement date: | March 1
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435J125
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