Published on 3/2/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.92 million market-linked step-up notes tied to the Dow
By Marisa Wong
Morgantown, W.Va., March 2 – HSBC USA Inc. priced $4.92 million of 0% market-linked step-up notes due Feb. 28, 2022 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above the step-up value – 142% of the initial level – the payout at maturity will be par of $10.00 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 42%.
If the index falls by up to 20%, the payout will be par. Investors will be exposed to any index decline beyond 20%.
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 index: | Dow Jones industrial average
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Amount: | $4,919,400
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Maturity: | Feb. 28, 2022
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If index finishes above step-up value, par plus index gain; if index gains by up to step-up level, par plus 42%; par if index falls by up to 20%; exposure to losses beyond 20%
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Initial level: | 16,697.29
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Step-up value: | 23,710.15, 142% of initial level
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Threshold level: | 13,357.83, 80% of initial level
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Pricing date: | Feb. 25
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Settlement date: | March 3
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Underwriter: | BofA Merrill Lynch
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Fees: | 2.5%
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Cusip: | 40434N853
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