Published on 12/29/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $15.45 million leveraged market-linked step-up notes on index basket
By Marisa Wong
Morgantown, W.Va., Dec. 29 – HSBC USA Inc. priced $15.45 million of leveraged market-linked step-up notes due Dec. 20, 2019 linked to a global equity basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index, with a 40% weight, and the Euro Stoxx 50 index and the MSCI EAFE index, each with a 30% weight.
If the basket finishes above the step-up value, 118% of the initial level, the payout at maturity will be par of $10 plus 141% of the basket gain.
If the basket gains by up to the step-up level, the payout will be par plus the step-up payment of 18%.
Investors will be fully exposed to any basket decline.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged market-linked step-up notes
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Underlying basket: | S&P 500 index, 40% weight; Euro Stoxx 50 index and MSCI EAFE index, each with a 30% weight
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Amount: | $15,453,300
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Maturity: | Dec. 20, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If the basket finishes above the step-up value, par plus 141% of the basket gain; if the basket gains by up to the step-up level, par plus the step-up payment of 18%; otherwise, investors will be fully exposed to any basket decline
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Initial levels: | 2,270.76 for S&P, 3,279.41 for Euro Stoxx, 1,670.71 for MSCI EAFE
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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: | 2.25%
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Cusip: | 40435B122
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