Published on 2/25/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.22 million enhanced market-linked step-up notes with buffer on basket
By Sarah Lizee
Olympia, Wash., Feb. 25 – HSBC USA Inc. priced $6.22 million of 0% enhanced market-linked step-up notes with buffer due Feb. 28, 2022 linked to a basket of indexes, 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%.
If the basket finishes above the step-up level – 122.1% of the initial level – the payout at maturity will be par plus the gain.
If the basket finishes at or below the step-up level but at or above the 90% threshold level, the payout will be par plus the step-up return of 22.1%.
Investors will be exposed to any losses beyond 10%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Enhanced market-linked step-up notes with buffer
|
| Underlying indexes: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
|
| Amount: | $6,224,930
|
| Maturity: | Feb. 28, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the basket finishes above the step-up level, par plus the gain; if the basket finishes at or below the step-up level but at or above the 90% threshold level, par plus 22.1%; exposure to any losses beyond 10% Initial levels: | 3,263.70 for Stoxx, 7,167.39 for FTSE, 21,464.23 for Nikkei, 9,333.57 for Swiss, 6,139.249 for S&P/ASX and 28,629.92 for Hang Seng
|
| Step-up value: | 122.1% of initial level
|
| Threshold value: | 90% of starting value
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2.25%
|
| Cusip: | 40436A370
|
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