Published on 6/24/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $721,000 contingent income barrier notes linked to Russell 2000
By Angela McDaniels
Tacoma, Wash., June 24 – HSBC USA Inc. priced $721,000 of contingent income barrier notes due June 29, 2020 linked to the Russell 2000 index, according to a 424B2 with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 5.6% if the index closes above the barrier level, 70% of the initial index level, on the determination date for that quarter.
If the index finishes at or above the barrier level, the payout at maturity will be par plus the contingent coupon. If the index finishes below the barrier level, investors will be fully exposed to the index decline.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Contingent income barrier notes
|
Underlying index: | Russell 2000
|
Amount: | $721,000
|
Maturity: | June 29, 2020
|
Coupon: | 5.6%, payable quarterly if index closes above barrier level on determination date for that quarter
|
Price: | Par
|
Payout at maturity: | If index finishes at or above barrier level, par; otherwise, full exposure to losses
|
Initial index level: | 1,188.426
|
Coupon trigger: | 831.9, 70% of initial level
|
Pricing date: | June 20
|
Settlement date: | June 27
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 3%
|
Cusip: | 40433BBY3
|
© 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.