Published on 10/5/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.57 million capped trigger gears tied to SPDR S&P 500 ETF
By Marisa Wong
Los Angeles, Oct. 5 – HSBC USA Inc. priced $3.57 million of 0% capped trigger gears due Dec. 30, 2021 linked to the SPDR S&P 500 exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus 2 times any ETF gain, capped at par plus 16.75%.
If the ETF falls by up to 20%, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Capped trigger gears
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Underlying ETF: | SPDR S&P 500 ETF
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Amount: | $3,568,500
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Maturity: | Dec. 30, 2021
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 2 times any ETF gain, capped at par plus 16.75%; if ETF falls by up to 20%, par; otherwise, 1% loss for each 1% decline below initial value
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Initial value: | $328.73
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Downside threshold: | $262.98, 80% of initial value
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Pricing date: | Sept. 25
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Settlement date: | Sept. 30
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40438Q787
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