Published on 7/30/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.6 million contingent return optimization securities linked to Russell 2000
By Angela McDaniels
Tacoma, Wash., July 30 - HSBC USA Inc. priced $5.6 million of 0% contingent return optimization securities due July 31, 2015 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is at least 75% of the initial level, the payout at maturity will be par of $10 plus the greater of 5% and the index return, subject to a maximum return of 18%.
If the final index level is less than 75% of the initial level, investors will be fully exposed to the decline.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent return optimization securities
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Underlying index: | Russell 2000
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Amount: | $5,595,830
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Maturity date: | July 31, 2015
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Coupon: | 0%
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Price: | Par of $10.00 for brokerage accounts; $9.80 for advisory accounts
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Payout at maturity: | If final index level is greater than or equal to trigger level, par plus greater of 5% and index return, up to maximum return of 18%; full exposure to losses if final index level is less than trigger level
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Initial index level: | 1,048.51
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Trigger level: | 786.38, 75% of initial level
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Pricing date: | July 26
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Settlement date: | July 31
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | UBS Financial Services Inc.
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Fees: | 2% for brokerage accounts; none for advisory accounts
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Cusip: | 40433X480
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