Published on 11/1/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $292,000 seven-year income plus notes linked to five stocks
By Susanna Moon
Chicago, Nov. 1 – HSBC USA Inc. priced $292,000 of income plus notes due Oct. 31, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The reference stocks are Apple Inc., International Business Machines Corp., Eli Lilly & Co., Altria Group, Inc. and Verizon Communications, Inc.
Interest will be 0.5%, the minimum coupon, plus 7.25% if each basket stock closes at or above its initial share price on the valuation date for that year. 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: | Apple Inc. (Nasdaq: AAPL), International Business Machines Corp. (NYSE: IBM), Eli Lilly & Co. (NYSE: LLY), Altria Group, Inc. and Verizon Communications, Inc. (NYSE: VZ)
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Amount: | $292,000
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Maturity: | Oct. 31, 2023
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Coupon: | 7.75% 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 levels: | $115.59 for Apple, $151.81 for IBM, $76.76 for Eli Lilly, $126.06 for Altria and $47.63 for Verizon
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40433UWC6
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