Published on 5/23/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.65 million trigger PLUS linked to five stocks
By Angela McDaniels
Tacoma, Wash., May 23 – HSBC USA Inc. priced $1.65 million of 0% trigger Performance Leveraged Upside Securities due May 22, 2020 linked to the common stocks of Amazon.com Inc., International Business Machines Corp., Intel Corp., Nvidia Corp. and Xilinx Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The stocks are equally weighted.
If the basket finishes above its initial level, the payout at maturity will be par of $10 plus 150% of the basket return, subject to a 35% maximum return.
If the basket finishes at or below its initial level but at or above its trigger level, the payout will be par. The trigger level is 75% of the initial basket level.
If the basket finishes below its trigger level, investors will be exposed to the basket’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger Performance Leveraged Upside Securities
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| Underlying stocks: | Amazon.com Inc. (Symbol: AMZN), International Business Machines Corp. (Symbol: IBM), Intel Corp. (Symbol: INTC), Nvidia Corp. (Symbol: NVDA) and Xilinx Inc. (Symbol: XLNX), equally weighted
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| Amount: | $1,648,000
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| Maturity: | May 22, 2020
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket finishes above initial level, par plus 150% of basket return, up to 35% maximum return; if basket finishes at or below initial level but at or above trigger level, par; if basket finishes below trigger level, exposure to decline
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| Initial share prices: | $959.84 for Amazon, $151.978 for IBM, $35.40 for Intel, $136.00 for Nvidia and $66.67 for Xilinx
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| Trigger level: | 75% of initial basket level
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| Pricing date: | May 19
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| Settlement date: | May 24
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 3%
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| Cusip: | 40435H574
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