Published on 12/28/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.60 million bear Stars linked to Russell 2000
By Marisa Wong
Morgantown, W.Va., Dec. 28 – HSBC USA Inc. priced $3,597,400 of 0% bear Strategic Accelerated Redemption Securities due Jan. 7, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
BofA Merrill Lynch is the underwriter.
After six months, if the index closes at or below the initial index level on a quarterly observation date, the notes will be called at par plus a call premium of 12.9% per year.
If the notes are not called, investors will lose an amount equal to the index gain.
Issuer: | HSBC USA Inc.
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Issue: | Bear Strategic Accelerated Redemption Securities
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Underlying index: | Russell 2000
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Amount: | $3,597,400
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Maturity: | Jan. 7, 2019
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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 gains
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Call: | Automatically at par plus annualized call return of 12.9% if index closes at or below initial level on a June 22, Sept. 21, 2018 or Dec. 28, 2018
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Initial index level: | 1,547.107
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Pricing date: | Dec. 21
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Settlement date: | Dec. 29
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Underwriter: | BofA Merrill Lynch
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Fees: | 1.25%
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Cusip: | 40435J760
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