Published on 5/18/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.93 million digital notes due 2021 tied to SPDR S&P Bank ETF
By Sarah Lizee
Olympia, Wash., May 18 – HSBC USA Inc. priced $2.93 million of 0% digital notes due Nov. 3, 2021 linked to the SPDR S&P Bank ETF, according to a 424B2 filed with the Securities and Exchange Commission.
If the ETF finishes at or above its 70% threshold level, the payout at maturity will be par plus the digital percentage of 17.7%.
Otherwise, investors will lose 1.4286% for each 1% decline beyond the buffer.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Digital notes
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Underlying asset: | SPDR S&P Bank ETF
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Amount: | $2,926,000
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Maturity: | Nov. 3, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF gains or falls by up to 30%, par plus 17.7%; otherwise, 1.4286% loss per 1% decline beyond 30%
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Initial level: | $26.99
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Buffer level: | 70% of initial level
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Pricing date: | May 14
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Settlement date: | May 21
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.11%
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Cusip: | 40438CHL8
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