Published on 12/2/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.42 million long short notes linked to energy, consumer discretionary index
By Angela McDaniels
Tacoma, Wash., Dec. 2 - HSBC USA Inc. priced $5.42 million of 0% long short notes due May 26, 2015 linked to the Energy Select Sector/Consumer Discretionary Select Sector Long Short index, according to a 424B2 filing with the Securities and Exchange Commission.
The composite index consists of a leveraged long position in the Energy Select Sector index and a short position in the Consumer Discretionary Select Sector index.
The long component has an initial weight of 150%, and the short component has an initial weight of negative 50%.
The payout at maturity will be par of $10 plus the index return. If that return is negative, investors will receive less than par.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Long short notes
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Underlying index: | Energy Select Sector/Consumer Discretionary Select Sector Long Short index
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Amount: | $5,417,490
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Maturity: | May 26, 2015
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus index return, which may be negative
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Initial levels: | 872.46 for energy index and 655.02 for consumer discretionary index
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Final index level: | Average of index's closing levels on May 14, 2015, May 15, 2015, May 18, 2015, May 19, 2015 and May 20, 2015
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Pricing date: | Nov. 26
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Settlement date: | Dec. 3
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Agent: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40434B800 |
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