By Marisa Wong
Morgantown, W.Va., Nov. 28 – HSBC USA Inc. sold $7.78 million of 0% capped Leveraged Index Return Notes due Nov. 21, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index and the Russell 2000 index, each with an initial weight of 50%.
The payout at maturity will be par of $10 plus 150% of any basket gain, subject to a maximum return of 22.25%.
If the basket falls by up to 5%, the payout will be par.
Investors will be fully exposed to any basket decline beyond 5%.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Capped Leveraged Index Return Notes
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Underlying indexes: | S&P 500 and Russell 2000, each with 50% weight
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Amount: | $7,783,940
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Maturity: | Nov. 21, 2018
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 150% of any basket gain, capped at 22.25%; par if basket falls by up to 5%; exposure to declines beyond 5%
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Initial levels: | 2,202.94 for S&P, 1,334.341 for Russell
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Pricing date: | Nov. 22
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Settlement date: | Nov. 30
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Agent: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40435B262
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