Published on 4/10/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.36 million allocation securities linked to ETF basket
By Marisa Wong
Morgantown, W.Va., April 10 – HSBC USA Inc. priced $1.36 million of 0% allocation securities due March 31, 2022 linked to a basket of the SPDR S&P 500 exchange-traded fund, the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The best performing of the ETFs will be given a 60% weight, the ETF with the second-best performance will be weighted at 40%, and the lowest-performing ETF will not count toward the basket performance.
The payout at maturity will be par of $10 plus the basket return. The notes are not principal protected, so investors will receive less than par if that basket return is negative.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Allocation securities
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Underlying basket: | SPDR S&P 500 ETF, iShares MSCI EAFE ETF and iShares MSCI Emerging Markets ETF; best performer will be given a 60% weight, second-best performer will be weighted at 40%
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Amount: | $1,355,180
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Maturity: | March 31, 2022
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus the basket return, with full exposure to any losses
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Initial levels: | $235.32 for SPDR S&P, $62.60 for EAFE, $39.81 for EM
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Pricing date: | March 28
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Settlement date: | March 31
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | 3.5%
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Cusip: | 40435H749
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