Published on 7/1/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $8.11 million capped notes with absolute return buffer on S&P 500
By Wendy Van Sickle
Columbus, Ohio, July 1 – HSBC USA Inc. priced $8.11 million of 0% capped notes with absolute return buffer due June 24, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10 plus any index gain, capped at par plus 10%.
If the index finishes flat or falls by up to 19.5%, investors will receive par plus the absolute value of the index return.
Investors will be exposed to any losses beyond 19.5%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Capped notes with absolute return buffer
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Underlying index: | S&P 500
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Amount: | $8,112,730
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Maturity: | June 24, 2022
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus any index gain, capped at 10%; if index falls by up to 19.5%, par plus absolute value of index return; exposure to any losses beyond 19.5%
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Initial value: | 3,083.76
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Threshold value: | 2,482.43, 80.5% of initial value
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Final value: | Average of index’s closing levels on five trading days ending June 21 2022
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Pricing date: | June 25
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Settlement date: | July 2
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Agent: | BofA Securities, Inc.
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Fees: | 2%
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Cusip: | 40438J593
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