Published on 9/29/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.16 million one-year Stars linked to S&P 500
By Marisa Wong
Morgantown, W.Va., Sept. 29 – HSBC USA Inc. priced $8.16 million of 0% Strategic Accelerated Redemption Securities due Oct. 6, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above its initial level on any quarterly observation date after six months, the notes will be automatically called at par plus an annualized call premium of 6.65%.
If the notes are not called and the index finishes at or above the threshold level, 95% of its initial level, the payout will be par. Otherwise, investors will lose 1% for every 1% decline beyond 5%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying index: | S&P 500
|
| Amount: | $8,159,710
|
| Maturity: | Oct. 6, 2017
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index finishes at or above the threshold level, par; otherwise, 1% loss for every 1% decline beyond 5%
|
| Call: | Automatically at par plus an annualized call premium of 6.65% if the index closes at or above its initial level on any quarterly observation date after six months
|
| Initial level: | 2,164.69
|
| Threshold level: | 2,056.46, 95% of initial level
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 30
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 40435B742
|
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