Published on 2/21/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $15 million trigger PLUS tied to iShares MSCI Emerging Markets
By Wendy Van Sickle
Columbus, Ohio, Feb. 21 – HSBC USA Inc. priced $8.76 million of 0% trigger Performance Leveraged Upside Securities due Aug. 21, 2019 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF return is positive, the payout at maturity will be par of $10 plus 200% of the ETF return, capped at $12.02 per PLUS. Investors will receive par if the ETF declines by 10% or less and will be fully exposed to the ETF’s decline from its initial share price if it falls by more than 10%.
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 ETF: | iShares MSCI Emerging Markets ETF
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Amount: | $15 million
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Maturity: | Aug. 21, 2019
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If final share price is greater than initial share price, par plus 200% of ETF return, capped at $12.02 per PLUS; if final share price is less than or equal to initial share price but greater than or equal to trigger price, par; if final share price is less than trigger price, exposure to decline from initial share price
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Initial share price: | $49.45
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Trigger level: | $44.586, 90% of initial share price
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Pricing date: | Feb. 16
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Settlement date: | Feb. 22
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Wealth Management
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Fees: | 2.5%
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Cusip: | 40435M607
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