Published on 4/10/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $397,500 capped buffer gears linked to Russell 2000
By Marisa Wong
Morgantown, W.Va., April 10 – HSBC USA Inc. priced $397,500 of 0% capped buffer gears due June 29, 2018 linked to the Russell 2000 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 two times the index gain, subject to a maximum return of 14.5%.
If the index finishes at or below the initial level but at or above the downside threshold, 90% of the initial level, the payout will be par.
Otherwise, investors will be exposed to losses beyond 10%.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped buffer gears
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| Underlying index: | Russell 2000 index
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| Amount: | $397,500
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| Maturity: | June 29, 2018
|
| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | Par plus two times any index gain, return capped at 14.5%; par if index finishes at or below the initial level but at or above the 90% downside threshold; otherwise, investors will be exposed to losses beyond 10%
|
| Initial index level: | 1,367.261
|
| Downside threshold: | 1,230.535, 90% of initial level
|
| Pricing date: | March 28
|
| Settlement date: | March 31
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | None
|
| Cusip: | 40435H731
|
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