Published on 4/16/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.59 million capped notes with absolute return buffer linked to Tesla
By Wendy Van Sickle
Columbus, Ohio, April 16 – HSBC Bank plc priced $2.59 million of 0% capped notes with absolute return buffer due April 25, 2025 linked to the shares of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10 plus any stock gain, subject to a maximum payout of par plus 28.4%.
If the stock finishes flat or falls by up to 20%, investors will receive par plus the absolute value of the stock return. Otherwise, investors will be exposed to any losses beyond 20%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC Bank plc
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Issue: | Capped notes with absolute return buffer
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Underlying stock: | Tesla, Inc.
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Amount: | $2,594,800
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Maturity: | April 25, 2025
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus any stock gain, capped at 28.4%; if stock falls by up to 20%, par plus absolute value of stock return; otherwise, 1% loss for every 1% decline beyond 20%
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Initial value: | $172.49
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Threshold value: | $137.99; 80% of initial value
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Pricing date: | April 11
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Settlement date: | April 18
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Agent: | BofA Securities, Inc.
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Fees: | 1.5%
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Cusip: | 40438G748
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