Published on 6/28/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4 million buffered AMPS linked to S&P 500, Russell
By Wendy Van Sickle
Columbus, Ohio, June 28 – HSBC USA Inc. priced $4 million of 0% buffered Accelerated Market Participation Securities due Nov. 5, 2019 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the return of the lesser performing index is greater than 3%, the payout at maturity will be par plus 10% plus 2.25 times the return of the lesser performing index beyond 3%, subject to a maximum return of 37%. If the return of the lesser performing index is between negative 10% and 3%, investors will receive par plus 76.92% times the sum of 10% plus the return. Investors will receive par if the lesser performing index declines by more than 10% but not more than 15%. Investors will lose 1% for every 1% that the lesser performing index declines beyond 15%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered Accelerated Market Participation Securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $4 million
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| Maturity: | Nov. 5, 2019
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If return of lesser performing index is greater than 3%, par plus 10% plus 2.25 times the return of lesser performing index beyond 3%, subject to maximum return of 37%; if return of lesser performing index is between negative 10% and 3%, par plus 76.92% times the sum of 10% plus return; par if lesser performing index declines by more than 10% but not more than 15%; 1% loss for every 1% that lesser performing index declines beyond 15%
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| Initial index levels: | 2,037.41 for S&P, 1,127.538 for Russell
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| Pricing date: | June 24
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| Settlement date: | June 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40433URA6
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