Published on 2/6/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $25.8 million leveraged market-linked step-up notes on index basket
By Sarah Lizee
Olympia, Wash., Feb. 6 – HSBC USA Inc. priced $25.8 million of leveraged market-linked step-up notes due Jan. 27, 2023 linked to a global equity basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index (50% weight), the Euro Stoxx 50 index (20% weight), the FTSE 100 index (10% weight), the Nikkei Stock Average index (10% weight), the Swiss Market index (3.75% weight), the S&P/ASX 200 index (3.75% weight) and the Hang Seng index (2.5% weight).
If the basket finishes above the step-up value, 118% of the initial level, the payout at maturity will be par of $10 plus 154% 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 18%.
Investors will be fully exposed to any basket decline.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Leveraged market-linked step-up notes
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| Underlying basket: | S&P 500 index (50% weight), the Euro Stoxx 50 index (20% weight), the FTSE 100 index (10% weight), the Nikkei Stock Average index (10% weight), the Swiss Market index (3.75% weight), the S&P/ASX 200 index (3.75% weight) and the Hang Seng index (2.5% weight)
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| Amount: | $25,797,140
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| Maturity: | Jan. 27, 2023
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the basket finishes above the step-up value, par plus 154% of the basket gain; if the basket gains by up to the step-up level, par plus the step-up payment of 18%; otherwise, investors will be fully exposed to any basket decline
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| Initial levels: | 3,283.66 for S&P, 3,690.78 for Stoxx, 7,381.96 for FTSE, 22,977.75 for Nikkei, 10,748.92 for Swiss, 7,008.429 for S&P/ASX, 26,449.13 for Hang Seng
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| Step-up value: | 118% of initial basket level
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| Pricing date: | Jan. 30
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| Settlement date: | Feb. 6
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| Agent: | BofA Securities, Inc.
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| Fees: | 2.25%
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| Cusip: | 40438B285
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