Published on 11/28/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $9.86 million market-linked step-up notes tied to S&P 500
By Marisa Wong
Morgantown, W.Va., Nov. 28 – HSBC USA Inc. priced $9.86 million of 0% market-linked step-up notes due Nov. 26, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above the step-up value – 138.51% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 38.51%.
If the index falls by up to 10%, the payout will be par.
Investors will be exposed to any index decline beyond 10%.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Market-linked step-up notes
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Underlying index: | S&P 500
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Amount: | $9,862,100
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Maturity: | Nov. 26, 2021
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If the index finishes above the step-up value, par plus the index gain; if the index finishes at or below the step-up level but at or above the initial level, par plus 38.51%; par if index falls by up to 10%; exposure to losses beyond 10%
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Initial level: | 2,202.94
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Step-up value: | 3,051.29, 138.51% of initial level
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Threshold value: | 1,982.65, 90% of initial level
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Pricing date: | Nov. 22
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Settlement date: | Nov. 30
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Underwriter: | BofA Merrill Lynch
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Fees: | 2.5%
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Cusip: | 40435B411
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