Published on 11/1/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $22.12 million airbag performance notes linked to S&P 500 Low Volatility
By Susanna Moon
Chicago, Nov. 1 - HSBC USA Inc. priced $22.12 million of 0% airbag performance securities due Jan. 31, 2018 linked to the S&P 500 Low Volatility index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus 109.5% of any gain in the index.
Investors will receive par if the index falls by up to 50% and will lose 2% for each 1% decline beyond 50%.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Airbag performance securities
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Underlying index: | S&P 500 Low Volatility index
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Amount: | $22,119,000
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Maturity: | Jan. 31, 2018
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 109.5% of any index gain; par for losses up to 50%; 2% loss for each 1% drop beyond 50%
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Initial level: | 4,497.33
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Trigger level: | 50% of initial level
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 3.5%
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Cusip: | 40433T786
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