Published on 3/7/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1 million contingent income buffered notes linked to Russell
By Wendy Van Sickle
Columbus, Ohio, March 7 – HSBC USA Inc. priced $1 million of contingent income buffered notes due Sept. 2, 2024 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 5.85% if the index closes at or above the coupon trigger, 75% of the initial level, on the determination date for that quarter.
If the index return is greater than or equal to negative 25%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the index declines beyond 25%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income buffered notes
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Underlying index: | Russell 2000
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Amount: | $1 million
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Maturity: | Sept 2, 2024
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Coupon: | 5.85%, payable quarterly if index closes at or above coupon trigger on determination date for that quarter
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Price: | Par
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Payout at maturity: | If index return is greater than or equal to negative 25%, par; otherwise, 1% loss for every 1% that index declines beyond 25%
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Initial index level: | 1,407.970
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Coupon trigger: | 1,055.9775, 75% of initial index level
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Pricing date: | Feb. 27
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Settlement date: | March 2
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Underwriters: | HSBC Securities (USA) Inc.
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Fees: | 3.7%
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Cusip: | 40433UT30
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