Published on 9/8/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $19.24 million 5% buffered fixed-rate notes on Russell 2000, EAFE fund
By Toni Weeks
San Luis Obispo, Calif., Sept. 8 – HSBC USA Inc. priced $19.24 million of 5% buffered fixed-rate notes due Dec. 9, 2015 linked to the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the least-performing asset finishes at or above 85% of the initial level, the payout at maturity will be par.
Otherwise, investors will share in losses at a rate of 1.17647% per 1% drop beyond the 15% buffer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered fixed-rate notes
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Underlying components: | Russell 2000 index, iShares MSCI EAFE ETF
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Amount: | $19,244,000
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Maturity: | Dec. 9, 2015
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Coupon: | 5%, payable quarterly
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Price: | Par
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Payout at maturity: | If least-performing component finishes at or above 85% of initial level, par; otherwise, 1.17647% loss for every 1% decline of least-performing component beyond 15%
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Initial levels: | 1,167.214 for Russell, $66.99 for ETF
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Buffer level: | 15%
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Pricing date: | Sept. 4
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Settlement date: | Sept. 9
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40433BNK0
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