Published on 7/11/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $17.71 million leveraged notes linked to Dow
By Angela McDaniels
Tacoma, Wash., July 11 – HSBC USA Inc. priced $17.71 million of 0% Leveraged Index Return Notes due June 25, 2021 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par of $10 plus 136.5% of the index return. Investors will receive par if the index declines by 20% or less and will lose 1% for every 1% that it declines beyond 20%.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged Index Return Notes
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Underlying index: | Dow Jones industrial average
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Amount: | $17,707,740
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Maturity: | July 25, 2021
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If index return is positive, par plus 136.5% of index return; par if index declines by 20% or less; 1% loss for every 1% that index declines beyond 20%
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Initial index level: | 17,895.88
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Threshold value: | 14,316.70, 80% of initial level
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Final index level: | Average of index’s closing levels on five trading days ending June 22, 2021
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Pricing date: | July 7
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Settlement date: | July 13
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Underwriter: | BofA Merrill Lynch
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Fees: | 2.5%
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Cusip: | 40434V822
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