Published on 6/2/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9.99 million capped leveraged index return notes on index basket
By Wendy Van Sickle
Columbus, Ohio, June 2 – HSBC USA Inc. priced $9.99 million of 0% capped leveraged index return notes due May 26, 2023 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index with an initial weight of 20%, the Nikkei Stock Average index with an initial weight of 20%, the Swiss Market index with an initial weight of 7.5%, the S&P/ASX 200 index with an initial weight of 7.5% and the FTSE China 50 index with an initial weight of 5%.
If the basket return is positive, the payout at maturity will be par plus double the basket return, subject to a maximum return of 11.1%.
If the basket falls by up to 10%, the payout will be par.
Investors will lose 1% for each 1% decline beyond 10%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Capped leveraged index return notes
|
Underlying indexes: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and FTSE China 50 index (5% weight)
|
Amount: | $9,994,750
|
Maturity: | May 26, 2023
|
Coupon: | 0%
|
Price: | Par of $10
|
Payout at maturity: | Par plus 200% of any basket gain, capped at 11.1%; par if basket falls by up to 10%; otherwise, 1% loss for every 1% decline beyond 10%
|
Initial index levels: | 4,039.21 for Euro Stoxx 50; 7,019.67 for FTSE 100; 28,549.01 for Nikkei; 11,340.27 for Swiss Market; 7,094.874 for S&P/ASX 200; 20,670.84 for FTSE China 50
|
Threshold levels: | 90% of initial levels
|
Pricing date: | May 27
|
Settlement date: | June 4
|
Agent: | BofA Securities, Inc.
|
Fees: | 2%
|
Cusip: | 40438U341
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.