Published on 12/30/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.52 million contingent income barrier notes on Russell
By Marisa Wong
Madison, Wis., Dec. 26 - HSBC USA Inc. priced $2.52 million of contingent income barrier notes due Dec. 30, 2019 linked to the Russell 2000 index, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.6% if the index closes above the 70% barrier level on a determination date for that quarter.
If the index finishes at or above the 70% barrier level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income barrier notes
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Underlying index: | Russell 2000
|
Amount: | $2,524,000
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Maturity: | Dec. 30, 2019
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Coupon: | 6.6%, payable quarterly if index closes above barrier level on determination date for that quarter
|
Price: | Par
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Payout at maturity: | If index finishes at or above 70% barrier level, par; otherwise, full exposure to losses
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Initial level: | 1,146.47
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Barrier level: | 802.53, 70% of initial level
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Pricing date: | Dec. 20
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Settlement date: | Dec. 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3%
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Cusip: | 40432XPR6
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