Published on 4/29/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.21 million seven-year income plus notes on five stocks
By Tali Rackner
Norfolk, Va., April 29 – HSBC USA Inc. priced $1.21 million of income plus notes due April 28, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Cisco Systems, Inc., International Business Machines Corp., Merck & Co., Inc., Procter & Gamble Co. and Verizon Communications, Inc.
Interest will be 1%, plus 6% if each basket stock closes at or above its initial share price on the valuation date for that year or otherwise 0%. Interest is payable annually.
The payout at maturity will be par plus the last coupon payment.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Income plus notes
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Underlying stocks: | Cisco Systems, Inc., International Business Machines Corp., Merck & Co., Inc., Procter & Gamble Co. and Verizon Communications, Inc.
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Amount: | $1,205,000
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Maturity: | April 28, 2023
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Coupon: | 7% if each basket stock closes at or above initial share price on valuation date or otherwise 1%; payable annually
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Price: | Par
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Payout at maturity: | Par plus last coupon
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Initial share prices: | $28.45 for Cisco, $149.08 for IBM, $56.04 for Merck & Co., $79.55 for Procter & Gamble and $50.44 for Verizon
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Pricing date: | April 26
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Settlement date: | April 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.025%
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Cusip: | 40433UKE5
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