Published on 12/16/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $8 million enhanced averaging buffered notes on indexes, ETF
By Marisa Wong
Madison, Wis., Dec. 16 – HSBC USA Inc. priced $8 million of 0% enhanced averaging buffered notes due June 17, 2019 linked to equal weights of the MSCI EAFE index, the S&P Global Infrastructure index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the basket finishes at or above 85% of the initial basket level, the payout at maturity will be par plus 175% of any positive average reference return of the basket.
Otherwise, investors will lose 1.1765% for each 1% decline beyond 15%, potentially offset by the average reference return times 1.75 times any gain in the average return.
The average reference return will be set using the average of the closing levels of the basket components on 10 observation dates beginning on March 12, 2017.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Enhanced averaging buffered notes
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| Underlying basket: | MSCI EAFE index, the S&P Global Infrastructure index and the iShares MSCI Emerging Markets ETF, equally weighted
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| Amount: | $8 million
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| Maturity: | June 17, 2019
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If basket finishes at or above 85% of initial level, par plus 175% of any positive average reference return of basket; otherwise, 1.1765% loss for each 1% decline beyond 15%, potentially offset by average reference return times 1.75 times any gain in average return
|
| Initial levels: | 1,767.09 for MSCI EAFE, 2,414.05 for S&P Global and $38.34 for ETF
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| Average return: | Set using average of closing levels of basket components on 10 observation dates beginning on March 12, 2017
|
| Pricing date: | Dec. 12
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| Settlement date: | Dec. 17
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40433BUH9
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