Published on 2/25/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $30.29 million of notes due 2022 linked to index basket
By Sarah Lizee
Olympia, Wash., Feb. 25 – HSBC USA Inc. priced $30.29 million of 0% notes due Feb. 24, 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 return is positive, the payout at maturity will be par of $10 plus 1.55 times the basket return.
The payout will be par plus the absolute value of the return of the basket if it declines by 15% or less.
Investors will lose 1% for every 1% that the basket may decline beyond 15%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Notes
|
| 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), the S&P/ASX 200 index (7.5% weight) and the Hang Seng index (5% weight)
|
| Amount: | $30,288,170
|
| Maturity: | Feb. 24, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the basket return is positive, par plus 1.55 times the return; par plus the absolute value of the return of the basket if it declines by 15% or less; 1% loss for every 1% that the basket may decline beyond 15%
|
| Initial index 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, 28,629.92 for Hang Seng
|
| Final index levels: | Average of index’s closing levels on five trading days ending Feb. 21, 2022
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| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2.25%
|
| Cusip: | 40436A479
|
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