Published on 7/11/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $17.17 million of one-year Stars linked to S&P 500
By Wendy Van Sickle
Columbus, Ohio, July 11 – HSBC USA Inc. priced $17.17 million of 0% Strategic Accelerated Redemption Securities due July 14, 2017 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annual call premium of 7.1% if the index closes at or above its initial level on any quarterly review date.
The payout at maturity will be par unless the index finishes below negative 5%, in which case investors will have 1-to-1 exposure to losses beyond 5%.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500
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Amount: | $17,166,990
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Maturity: | July 14, 2017
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par unless the index falls by more than 5%, in which case exposure to losses beyond 5%
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Call: | At par plus 7.1% annualized if index closes at or above initial level on a quarterly review date
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Initial level: | 2,097.90
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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: | 1.25%
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Cusip: | 40434V830
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