Published on 11/1/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $634,800 five-year trigger gears linked to S&P 500
By Marisa Wong
Morgantown, W.Va., Nov. 1 – HSBC USA Inc. priced $634,800 of 0% trigger gears due Oct. 29, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is greater than zero, the payout at maturity will be par of $10 plus 1.7 times the index return. Investors will receive par if the index declines by 25% or less and will be fully exposed to the index’s decline from its initial level if it declines by more than 25%.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger gears
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Underlying index: | S&P 500
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Amount: | $634,800
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Maturity: | Oct. 29, 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 greater than zero, par plus 1.7 times index return; par if index return is less than or equal to zero but final index level is greater than or equal to downside threshold; full exposure to index’s decline from initial level if index finishes below downside threshold
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Initial index level: | 2,139.43
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Downside threshold: | 1,604.57, 75% of initial level
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | 0.5%
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Cusip: | 40435B577
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