Published on 12/30/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $67.26 million Capped Leveraged Index Return Notes on S&P
By Marisa Wong
Los Angeles, Dec. 30 – HSBC USA Inc. priced $67.26 million of 0% Capped Leveraged Index Return Notes due Feb. 25, 2022 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par of $10 plus 200% of the index return, subject to a maximum payout of par plus 10.3%. Investors will receive par if the index declines by 5% or less and will lose 1% for every 1% that it declines beyond 5%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Capped Leveraged Index Return Notes
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Underlying index: | S&P 500 index
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Amount: | $67,262,770
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Maturity: | Feb. 25, 2022
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 200% of any index gain, capped at par plus 10.3%; par if index declines by 5% or less; 1% loss for every 1% that index declines beyond 5%
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Initial level: | 3,690.01
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Threshold level: | 3,505.51, or 95% of initial level
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Final level: | Average of index’s closing levels on five trading days ending Feb. 22, 2022
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Pricing date: | Dec. 23
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Settlement date: | Dec. 31
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Agent: | BofA Securities, Inc.
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Fees: | 1.75%
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Cusip: | 40438Q399
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