Published on 2/28/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $11.14 million Stars linked to S&P 500
By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – HSBC USA Inc. priced $11.14 million of 0% Strategic Accelerated Redemption Securities due March 9, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 8.06% if the index closes at or above its initial level on Aug. 18, 2017, Nov. 17, 2017 or March 2, 2018.
If the notes are not called, it means the index has finished below its initial level and investors will be exposed to that decline at maturity.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500
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Amount: | $11,136,250
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Maturity: | March 9, 2018
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par minus 1% for every 1% that index declines from initial level
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Call: | At par plus 8.06% per year if index closes at or above initial level on Aug. 18, 2017, Nov. 17, 2017 or March 2, 2018
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Initial index level: | 2,363.81
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Pricing date: | Feb. 23
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Settlement date: | March 2
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Agent: | BofA Merrill Lynch
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Fees: | 1.25%
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Cusip: | 40435C427
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