Published on 6/11/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.19 million market plus notes linked to ETF basket
By Toni Weeks
San Luis Obispo, Calif., June 11 – HSBC USA Inc. priced $2.19 million of 0% market plus notes due Dec. 11, 2015 linked to a basket of three equally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund.
A knock-out event occurs if the basket closes below the initial level by more than the 16% knock-out buffer amount on any trading day during the life of the notes.
The payout at maturity will be par plus the greater of the basket return and 0% unless a knock-out event has occurred, in which case investors will receive par plus the basket return, with full exposure to any losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
Issuer: | HSBC USA Inc.
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Issue: | Market plus notes
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Underlying basket: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund, equally weighted
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Amount: | $2,185,000
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Maturity: | Dec. 11, 2015
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If basket closes below 84% of initial basket level during life of notes, par plus basket return, with exposure to any losses; otherwise, par plus basket return, floor of par
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Initial levels: | $96.81 for energy fund, $22.80 for financial fund, $38.19 for technology fund
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Initial basket level: | 100
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Pricing date: | June 6
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Settlement date: | June 11
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | J.P. Morgan Securities LLC
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Fees: | 1.25%
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Cusip: | 40433BEF1
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