Published on 10/29/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.92 million annual income opportunity notes on 10 stocks
By Jennifer Chiou
New York, Oct. 29 – HSBC USA Inc. priced $2,916,000 of annual income opportunity notes with auto cap due Oct. 29, 2021 linked to a basket of 10 common stocks, according to an FWP filing with the Securities and Exchange Commission.
The underlying companies are Apple Inc., Abbott Laboratories, Caterpillar Inc., Costco Wholesale Corp., Facebook, Inc., FedEx Corp., Hershey Co., Microsoft Corp., Phillips 66 and Twitter, Inc.
Interest is payable annually and will equal the greater of (a) the average of the performances of the basket stocks and (b) the minimum rate of 0%.
A stock's performance will be equal to the auto cap rate, 9%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 10%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Annual income opportunity notes with auto cap
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| Underlying stocks: | Apple Inc. (Symbol: AAPL), Abbott Laboratories (Symbol: ABT), Caterpillar Inc. (Symbol: CAT), Costco Wholesale Corp. (Symbol: COST), Facebook, Inc. (Symbol: FB), FedEx Corp. (Symbol: FDX), Hershey Co. (Symbol: HSY), Microsoft Corp. (Symbol: MSFT), Phillips 66 (Symbol: PSX) and Twitter, Inc. (Symbol: TWTY)
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| Amount: | $2,916,000
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| Maturity: | Oct. 29, 2021
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| Coupon: | Average of the performances of basket stocks, subject to a minimum interest rate of 0%; payable annually
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| Price: | Par
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| Payout at maturity: | Par
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| Stock performance: | If stock's return is greater than or equal to zero, 9%; otherwise, greater of stock return and negative 10%
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40433BRP5
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