Published on 7/27/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.22 million four-year Stars tied to three financial stocks
By Wendy Van Sickle
Columbus, Ohio, July 27 – HSBC USA Inc. priced $3.22 million of 0% Strategic Accelerated Redemption Securities due July 30, 2021 linked to the worst performing of the common stocks of Citigroup Inc., Goldman Sachs Group, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 19.6% if each stock closes at or above its initial price on an annual observation date.
If the notes are not called, investors will lose 1% for every 1% decline of the least performing stock below its initial price.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying stocks: | Citigroup Inc., Goldman Sachs Group, Inc. and JPMorgan Chase & Co.
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Amount: | $3,221,000
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Maturity: | July 30, 2021
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | 1% loss for every 1% decline of least performing stock
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Call: | At par plus 19.6% per year if each stock closes at or above initial price on annual observation date
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Initial prices: | $70.21 for Citi, $233.76 for Goldman, $113.35 for JPMorgan
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Pricing date: | July 23
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Settlement date: | July 30
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Agent: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40435X736
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