Published on 6/18/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $18.94 million income notes linked to 20 stocks
By Angela McDaniels
Tacoma, Wash., June 18 – HSBC USA Inc. priced $18.94 million of income notes due June 26, 2020 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are AbbVie Inc., Amazon.com, Inc., BHP Billiton Ltd., Walt Disney Co., Ensco plc, Eaton Corp. plc, Ford Motor Co., Facebook, Inc., Fortinet, Inc., Helmerich & Payne, Inc., JPMorgan Chase & Co., Kraft Foods Group, Inc., Och-Ziff Capital Management Group LLC, Philip Morris International Inc., PPL Corp., Spectra Energy Corp, Sempra Energy, Texas Instruments Inc., Under Armour, Inc. and Verizon Communications Inc.
Each year, the notes will pay a 5.56% coupon if at least 14 of the 20 basket stocks have not decreased in value from the pricing date as measured on the coupon determination date for that year. Otherwise, the coupon for that year will be 1%.
The payout at maturity will be par of $10 plus the final coupon.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Income notes
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| Underlying stocks: | AbbVie Inc., Amazon.com, Inc., BHP Billiton Ltd., Walt Disney Co., Ensco plc, Eaton Corp. plc, Ford Motor Co., Facebook, Inc., Fortinet, Inc., Helmerich & Payne, Inc., JPMorgan Chase & Co., Kraft Foods Group, Inc., Och-Ziff Capital Management Group LLC, Philip Morris International Inc., PPL Corp., Spectra Energy Corp, Sempra Energy, Texas Instruments Inc., Under Armour, Inc. and Verizon Communications Inc.
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| Amount: | $18,937,610
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| Maturity: | June 26, 2020
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| Coupon: | Each year, the notes will pay a 5.56% coupon if at least 14 of the 20 basket stocks have not decreased in value from the pricing date as measured on the coupon determination date for that year; otherwise, the coupon for that year will be 1%
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon
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| Pricing date: | June 16
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| Settlement date: | June 23
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| Agent: | BofA Merrill Lynch
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| Fees: | 2.5%
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| Cusip: | 40434C519
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