Published on 6/30/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $29.22 million market-linked step-up notes tied to S&P 500
By Marisa Wong
Madison, Wis., June 30 – HSBC USA Inc. priced $29.22 million of 0% market-linked step-up notes due June 24, 2016 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above the step-up value – 109.55% of the initial level – the payout at maturity will be par of $10 plus the index return.
If the index finishes at or above the initial level but is less than or equal to the step-up value, the payout at maturity will be par of $10 plus the step-up payment of 9.55%.
Investors will be fully exposed to any losses.
BofA Merrill Lynch is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Market-linked step-up notes
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Underlying index: | S&P 500
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Amount: | $29,215,070
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Maturity: | June 24, 2016
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index finishes above step-up value, par plus index return; if index is at or above initial level but less than or equal to step-up value, par plus 9.55%; full exposure to losses
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Initial index level: | 1,957.22
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Threshold level: | 100% of initial level
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Step-up value: | 2,144.13, 109.55% of initial level
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Pricing date: | June 26
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Settlement date: | July 3
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Underwriter: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40434C527
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