Published on 1/27/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $902,000 contingent income barrier notes linked to Russell
By Toni Weeks
San Luis Obispo, Calif., Jan. 27 – HSBC USA Inc. priced $902,000 of contingent income barrier notes due Feb. 1, 2021 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 6.3% if the index closes above the coupon trigger, 70% of the initial level, on the determination date for that quarter.
If the index return is negative 30% or more, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income barrier notes
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Underlying index: | Russell 2000
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Amount: | $902,000
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Maturity: | Feb. 1, 2021
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Coupon: | 6.3%, payable quarterly if index closes above trigger level on determination date for that quarter
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Price: | Par
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Payout at maturity: | If index finishes at or above 70% barrier level, par; otherwise, full exposure to losses
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Initial level: | 1,188.928
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Trigger level: | 832.25, 70% of initial level
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Pricing date: | Jan. 23
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Settlement date: | Jan. 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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Cusip: | 40433BWG9
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