Published on 4/1/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $450,000 dual directional buffered return enhanced notes on S&P
By Kiku Steinfeld
Chicago, April 1 – HSBC USA Inc. priced $450,000 of 0% dual directional buffered return enhanced notes due March 16, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus the index gain, subject to a maximum return of 21%.
If the index falls by up to 28.75%, the payout will be par plus the absolute value of the index return.
If the index falls by more than 28.75%, investors will lose 1% for each 1% index decline beyond the buffer.
HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
Issuer: | HSBC USA Inc.
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Issue: | Dual directional buffered return enhanced notes
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Underlying index: | S&P 500 index
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Amount: | $450,000
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Maturity: | March 16, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus any index gain, capped at 21%; if index falls by up to 28.75%, par plus the absolute value of the index return; if index falls by more than 28.5%, 1% loss for each 1% decline beyond the buffer
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Initial value: | 2,711.02
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Buffer level: | 71.5% of initial level
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Final value: | Average of the closing levels on the five trading days ending March 13, 2023
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Pricing date: | March 13
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Settlement date: | March 18
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Agent: | HSBC Securities (USA) Inc.
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Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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Fees: | 2%
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Cusip: | 40438CBY6
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