Published on 3/3/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $12.14 million market-linked step-up notes on index basket
By Toni Weeks
San Luis Obispo, Calif., March 3 – HSBC USA Inc. priced $12.14 million of market-linked step-up notes due Aug. 25, 2017 linked to a basket comprised of the Euro Stoxx 50 index with a 70% weight and the Euro Stoxx Midcap index with a 30% weight, according to a 424B2 filing with the Securities and Exchange Commission.
If the basket finishes above the step-up value – 127.6% of the initial level – the payout at maturity will be par of $10.00 plus the basket gain.
If the basket gains by up to the step-up level, the payout will be par plus the step-up payment of 27.6%.
Investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Market-linked step-up notes
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Underlying basket: | Euro Stoxx 50 index (70% weight) and Euro Stoxx Midcap index (30% weight)
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Amount: | $12,135,000
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Maturity: | Aug. 25, 2017
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If basket finishes above step-up value, par plus basket gain; if basket gains by up to step-up level, par plus 27.6%; otherwise, exposure to any losses
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Initial basket level: | 100
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Initial index levels: | 3,574.94 for Euro Stoxx 50, 375.95 for Euro Stoxx Midcap
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Step-up value: | 127.6% of initial level
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Pricing date: | Feb. 26
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Settlement date: | March 5
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Underwriter: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40434F264
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