Published on 10/18/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $22.67 million 3.29% buffered notes linked to index, ETFs
By Marisa Wong
Madison, Wis., Oct. 18 - HSBC USA Inc. priced $22.67 million of 3.29% buffered notes due April 23, 2015 linked to a basket of one index and four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable semiannually.
The basket includes the S&P 500 index with a 70% weight, the iShares MSCI EAFE index fund with a 15% weight, the MidCap SPDR trust, series 1 with an 8% weight, the iShares MSCI Emerging Markets index fund with a 4% weight and the iShares Russell 2000 index fund with a 3% weight.
If the basket return is greater than or equal to zero, the payout at maturity will be par plus the lesser of the basket return and 36.79%. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% decline beyond 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered notes
|
| Underlying basket: | S&P 500 index (70% weight), iShares MSCI EAFE index fund (15% weight), MidCap SPDR trust, series 1 (8% weight), iShares MSCI Emerging Markets index fund (4% weight) and iShares Russell 2000 index fund (3% weight)
|
| Amount: | $22,669,000
|
| Maturity: | April 23, 2015
|
| Coupon: | 3.29%, payable semiannually
|
| Price: | Par
|
| Payout at maturity: | If basket return is zero or positive, par plus lesser of basket return and 36.79%; par if basket falls by 10% or less; 1% loss for every 1% drop beyond buffer
|
| Initial levels: | 1,224.58 for S&P 500; $52.12 for iShares MSCI EAFE; $155.48 for MidCap SPDR; $39.59 for iShares MSCI Emerging Markets; $71.14 for iShares Russell 2000
|
| Pricing date: | Oct. 14
|
| Settlement date: | Oct. 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 4042K1NW9
|
© 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.
