Published on 12/22/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $36.39 million Leveraged Index Return Notes linked to S&P
By Devika Patel
Knoxville, Tenn., Dec. 22 – HSBC USA Inc. priced $36.39 million of 0% Leveraged Index Return Notes due Dec. 22, 2021 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 116.8% of the index return. Investors will receive par if the index falls by up to 20% and will lose 1% for every 1% decline in the index beyond 20%.
The final index level will be the average of the closing index levels on the five trading days ending Dec. 17, 2021.
BofA Merrill Lynch is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged Index Return Notes
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Underlying index: | S&P 500
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Amount: | $36,389,130
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Maturity: | Dec. 22, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index return is positive, par plus 116.8% of index return; par if index falls by up to 20%; 1% loss for every 1% decline beyond 20%
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Initial index level: | 2,270.76
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Threshold level: | 1,816.61, 80% of initial level
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Pricing date: | Dec. 20
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Settlement date: | Dec. 30
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Agent: | BofA Merrill Lynch
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Fees: | 2.5%
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Cusip: | 40435B239
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