By Kiku Steinfeld
Chicago, Aug. 31 – HSBC USA Inc. priced $90,000 of callable contingent income buffered securities due Aug. 26, 2025 linked to the least performing of the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each six months, the notes will pay a contingent coupon at the rate of 6.9% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date that period.
If each index finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will lose 1% for every 1% decline of the lesser performing index beyond 20%.
The notes will be callable at par on any semiannual date.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income buffered securities
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Underlying indexes: | Nasdaq-100 and Dow Jones industrial average
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Amount: | $90,000
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Maturity: | Aug. 26, 2025
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Coupon: | 6.9% per year, payable semiannually if each index closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below buffer level, investors will lose 1% for every 1% decline of the lesser performing index beyond buffer
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Call option: | Callable at par on any semiannual date
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Initial levels: | 11,555.16 for Nasdaq-100 and 27,930.33 for Dow
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Coupon barrier/buffers: | 80% of initial levels
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Pricing date: | Aug. 21
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Settlement date: | Aug. 26
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Agent: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40438CTF8
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