Published on 3/18/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.19 million leveraged contingent barrier notes tied to peso vs. euro
By Marisa Wong
Madison, Wis., March 18 – HSBC USA Inc. priced $1.19 million of 0% leveraged contingent barrier enhanced notes due March 20, 2017 linked to the Mexican peso relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.
If the currency return is at least 80% of the initial level, the payout at maturity will be par plus 5 times the return, up to a maximum return of 52.5% and a minimum payment of par.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged contingent barrier enhanced notes
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Underlying currency: | Mexican peso relative to euro
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Amount: | $1,185,000
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Maturity: | March 20, 2017
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If currency return is at least 80% of initial level, par plus 5 times return, up to a maximum return of 52.5% and a minimum payment of par; otherwise, investors will be fully exposed to any losses
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Initial spot rate: | 16.3057
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Pricing date: | March 13
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Settlement date: | March 18
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Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
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Fees: | 1.5%
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Cusip: | 40433BH68
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