Published on 1/6/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $13.2 million one-year Stars on S&P 500 with 95% trigger via Merrill
By Marisa Wong
Madison, Wis., Jan. 6 - HSBC USA Inc. priced $13.2 million of 0% Strategic Accelerated Redemption Securities due Jan. 29, 2013 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 13.3% if the index closes at or above its initial level on any of the call dates, which are July 24, 2012, Oct. 23, 2012 and Jan. 22, 2013.
If the notes are not called, the payout at maturity will be par for losses up to 5%.
Investors will share fully in losses if the index closes below 95% of the initial level.
Bank of America Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500 index
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Amount: | $13,201,680
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Maturity: | Jan. 29, 2013
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par for losses up to 5%; full exposure to losses if the index closes below 95% of the initial level
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Call: | At par plus 13.3% per year if the index closes at or above its initial level on July 24, 2012, Oct. 23, 2012 and Jan. 22, 2013
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Initial level: | 1,277.30
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Threshold level: | 1,213.44, 95% of initial level
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Pricing date: | Jan. 4
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Settlement date: | Jan. 11
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Agent: | Bank of America Merrill Lynch
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Fees: | 1.25%
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Cusip: | 40433K504
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