Published on 12/30/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.4 million income plus notes on stocks with 9.8% potential coupon
By Marisa Wong
Madison, Wis., Dec. 30 - HSBC USA Inc. priced $1.4 million of income plus notes due Dec. 31, 2020 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Lorillard, Inc., Merck & Co., Inc., Microsoft Corp., Travelers Cos., Inc. and Verizon Communications Inc.
Interest is payable annually. The interest rate will be 1% plus (a) 8.8% if each basket stock closes at or above its initial share price on the valuation date or (b) 0% otherwise.
The payout at maturity will be par plus the last coupon payment.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Income plus notes
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Underlying stocks: | Lorillard, Inc. (NYSE: LO), Merck & Co., Inc. (NYSE: MRK), Microsoft Corp. (Nasdaq: MSFT), Travelers Cos., Inc. (NYSE: TRV) and Verizon Communications Inc. (NYSE: VZ)
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Amount: | $1,403,000
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Maturity: | Dec. 31, 2020
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Coupon: | 9.8% if each basket stock closes at or above its initial share price on the valuation date or 1% otherwise; payable annually
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Price: | Par
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Payout at maturity: | Par plus final coupon
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Initial share prices: | $50.42 for Lorillard, $49.72 for Merck, $37.44 for Microsoft, $90.01 for Travelers, $49.18 for Verizon
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Pricing date: | Dec. 26
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Settlement date: | Dec. 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 4.2%
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Cusip: | 40432XNZ0
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