Published on 5/8/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2 million 0% airbag optimization securities on S&P 500
By Marisa Wong
Madison, Wis., May 8 - HSBC USA Inc. priced $2 million of 0% airbag optimization securities due May 9, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus the index return, subject to a maximum return of 40.5%. Investors will receive par if the index falls by up to 25% and will lose 1.3333% per 1% decline beyond the 25% buffer.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Airbag optimization securities
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Underlying index: | S&P 500 index
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Amount: | $2 million
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Maturity: | May 9, 2017
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus index return, capped at 40.5%; par if index falls by up to 25%; 1.3333% loss per 1% decline beyond 25% buffer
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Initial level: | 1,617.50
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Pricing date: | May 6
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Settlement date: | May 9
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | 3%
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Cusip: | 40433X746
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