Published on 9/6/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.14 million trigger PLUS linked to six stocks
By Angela McDaniels
Tacoma, Wash., Sept. 6 – HSBC USA Inc. priced $1.14 million of 0% trigger Performance Leveraged Upside Securities due Sept. 5, 2019 linked to the common stocks of Apple Inc., Google Inc., Mobileye NV, Magna International Inc., Nvidia Corp. and Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The stocks are equally weighted.
If the basket finishes above its initial level, the payout at maturity will be par of $10 plus 150% of the basket return, subject to a 45% maximum return.
If the basket finishes at or below its initial level but at or above its trigger level, the payout will be par. The trigger level is 75% of the initial basket level.
If the basket finishes below its trigger level, investors will be exposed to the basket’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger Performance Leveraged Upside Securities
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| Underlying stocks: | Apple Inc. (Symbol: AAPL), Google Inc. (Symbol: GOOGL), Mobileye NV (Symbol: MBLY), Magna International Inc. (Symbol: MGA), Nvidia Corp. (Symbol: NVDA) and Tesla Motors, Inc. (Symbol: TSLA), equally weighted
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| Amount: | $1,139,000
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| Maturity: | Sept. 5, 2019
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket finishes above initial level, par plus 150% of basket return, up to 45% maximum return; if basket finishes at or below initial level but at or above trigger level, par; if basket finishes below trigger level, exposure to decline
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| Initial share prices: | $106.10 for Apple, $789.85 for Google, $48.89 for Mobileye, $40.30 for Magna, $61.34 for Nvidia and $212.01 for Tesla
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| Trigger level: | 75% of initial basket level
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 3%
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| Cusip: | 40434V178
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