Published on 6/9/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $20 million market plus notes linked to ETF, indexes
By Angela McDaniels
Tacoma, Wash., June 9 – HSBC USA Inc. priced $20 million of 0% market plus notes due June 10, 2019 linked to a basket of one exchange-traded fund and three indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the S&P 500 index with a 50% weight, the Euro Stoxx 50 index with a 25% weight, the Russell 2000 index with a 12.5% weight and the iShares MSCI Emerging Markets ETF with a 12.5% weight.
The payout at maturity will be par plus the greater of the basket return and 24% unless the final basket level has decreased from the initial basket level by more than 20%, in which case investors will lose 1% for every 1% that the final basket level is less than the initial basket level.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market plus notes
|
| Underlying basket: | S&P 500 index (50% weight), Euro Stoxx 50 index (25% weight), Russell 2000 index (12.5% weight) and iShares MSCI Emerging Markets ETF (12.5% weight)
|
| Amount: | $20 million
|
| Maturity: | June 10, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final basket level has decreased from initial basket level by more than 20%, 1% loss for every 1% that final basket level is less than initial basket level; otherwise, par plus greater of basket return and 24%
|
| Initial levels: | 1,940.46 for S&P 500; 3,267.05 for Euro Stoxx 50; 1,153.938 for Russell 2000; $45.13 for iShares MSCI Emerging Markets
|
| Pricing date: | June 5
|
| Settlement date: | June 10
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 3%
|
| Cusip: | 40433BEH7
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
