Published on 8/2/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $929,000 seven-year income plus notes tied to five stocks
By Marisa Wong
Morgantown, W.Va., Aug. 2 – HSBC USA Inc. priced $929,000 of income plus notes due July 31, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The reference stocks are Bristol-Myers Squibb Co., Ford Motor Co., McDonald’s Corp., Philip Morris International Inc. and Wal-Mart Stores, Inc.
The interest rate will be 0.5% plus (a) 7.5% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise. 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: | Bristol-Myers Squibb Co. (NYSE: BMY), Ford Motor Co. (NYSE: F), McDonald’s Corp. (NYSE: MCD), Philip Morris International Inc. (NYSE: PM) and Wal-Mart Stores, Inc. (NYSE: WMT)
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Amount: | $929,000
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Maturity: | July 31, 2023
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Coupon: | 8% if each basket stock closes at or above initial share price on valuation date or 0.5% otherwise; 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: | $75.06 for Bristol-Myers, $13.86 for Ford, $121.71 for McDonald’s, $98.96 for Philip Morris, $73.73 for Wal-Mart
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Pricing date: | July 26
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Settlement date: | July 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.9%
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Cusip: | 40433URF5
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