Published on 2/1/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.72 million capped buffer gears on Energy Select Sector SPDR fund
By Wendy Van Sickle
Columbus, Ohio, Feb. 1 – HSBC USA Inc. priced $1.72 million of 0% capped buffer gears due Feb. 28, 2018 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF return is greater than zero, the payout at maturity will be par of $10 plus 2 times the fund return, subject to a maximum return of 12%. Investors will receive par if the fund declines by 10% or less and lose 1% for every 1% that the ETF declines beyond 10%.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
Issuer: | HSBC USA Inc.
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Issue: | Capped buffer gears
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Underlying ETF: | Energy Select Sector SPDR fund
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Amount: | $1,722,400
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Maturity: | Feb. 28, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If the fund return is greater than zero, par plus 2 times the fund return, subject to a maximum return of 12%; par if the fund declines by 10% or less; 1% loss for every 1% decline beyond 10%
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Initial price: | $75.01
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Downside threshold: | 90% of initial price
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Pricing date: | Jan. 26
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Settlement date: | Jan. 31
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | 0.5%
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Cusip: | 40435C740
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