Published on 8/27/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $404,000 income plus notes on stock basket with 1% minimum coupon
By Toni Weeks
San Luis Obispo, Calif., Aug. 27 – HSBC USA Inc. priced $404,000 of income plus notes with minimum coupon due Aug. 30, 2021 linked to a basket of five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Altria Group, Inc., Bristol-Myers Squibb Co., ConocoPhillips, Kraft Foods Group, Inc. and McDonald’s Corp.
If every underlying stock closes at or above its initial level on a coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of 6%. Otherwise, the notes will pay the minimum coupon of 1%. Interest will be payable annually.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Income plus notes
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Underlying stocks: | Altria Group, Inc. (Symbol: MO), Bristol-Myers Squibb Co. (Symbol: BMY), ConocoPhillips (Symbol: COP), Kraft Foods Group, Inc. (Symbol: KRFT) and McDonald's Corp. (Symbol: MCD)
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Amount: | $404,000
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Maturity: | Aug. 30, 2021
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Coupon: | If every underlying stock finishes at or above initial level, 7%; otherwise, 1%; payable annually
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Price: | Par
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Payout at maturity: | Par
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Initial prices: | $42.77 for Altria, $50.73 for Bristol-Myers, $80.80 for ConocoPhillips, $58.09 for Kraft and $94.44 for McDonald's
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Pricing date: | Aug. 25
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Settlement date: | Aug. 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.85%
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Cusip: | 40433BKT4
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