Published on 12/4/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $15.18 million market-linked step-up autocallables on index basket
By Wendy Van Sickle
Columbus, Ohio, Dec. 4 – HSBC USA Inc. priced $15.18 million of 0% autcallable market-linked step-up notes due Nov. 24, 2023 linked to a global equity index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index with an initial weight of 20%, the Nikkei Stock Average index with an initial weight of 20%, the Swiss Market index with an initial weight of 7.5%, the S&P/ASX 200 index with an initial weight of 7.5% and the Hang Seng index with an initial weight of 5%.
The notes will be called at par plus 10.5% a year if basket closes above initial level on an annual call date.
If the basket finishes above its step-up level – 150% of the initial level – the payout at maturity will be par plus the gain.
If the basket gains by up to the step-up level, the payout will be par plus the step-up return of 50%.
Investors will receive par if the basket falls by up to 15% and will be exposed to losses beyond 15%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
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| Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), the S&P/ASX 200 index (7.5% weight) and the Hang Seng index (5% weight)
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| Amount: | $15,184,210
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| Maturity: | Nov. 24, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Call: | At par plus 10.5% a year if basket closes above initial level on an annual call date
|
| Payout at maturity: | If basket finishes at or above the step-up level, par plus gain; if basket gains by up to step-up level, par plus 50%; par if basket falls by up to 15%; exposure to losses beyond 15%
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| Step-up level: | 150% of initial level
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| Initial index levels: | 3,174.16 for Stoxx, 7,038.95 for FTSE, 22,262.60 for Nikkei, 9,015.59 for Swiss, 5,758.416 for S&P/ASX, 26,451.03 for Hang Seng
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| Pricing date: | Nov. 29
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| Settlement date: | Dec. 7
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 2%
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| Cusip: | 40436A826
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