Published on 1/30/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $57.19 million one-year Stars on S&P 500 with 95% trigger via Merrill
By Marisa Wong
Madison, Wis., Jan. 30 - HSBC USA Inc. priced $57.19 million of 0% Strategic Accelerated Redemption Securities due Feb. 5, 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 10% if the index closes at or above its initial level on any of the call dates, which are July 30, Oct. 9, 2012 and Jan. 29, 2013.
If the notes are not called and the index falls by up to 5%, the payout at maturity will be par. Investors will lose 1% for every 1% decline beyond 5%.
Bank of America Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Strategic Accelerated Redemption Securities
|
Underlying index: | S&P 500 index
|
Amount: | $57,194,890
|
Maturity: | Feb. 5, 2013
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | Par for index declines of up to 5%; 1% loss for each 1% drop below threshold level
|
Call: | At par plus 10% per year if the index closes at or above its initial level on July 30, Oct. 9, 2012 or Jan. 29, 2013
|
Initial level: | 1,318.43
|
Threshold level: | 1,252.51, 95% of initial level
|
Pricing date: | Jan. 26
|
Settlement date: | Feb. 2
|
Agent: | Bank of America Merrill Lynch
|
Fees: | 1.25%
|
Cusip: | 40433K660
|
© 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.