Published on 2/25/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $44.4 million notes with buffer linked to S&P 500
By Sarah Lizee
Olympia, Wash., Feb. 25 – HSBC USA Inc. priced $44.4 million of 0% notes due Feb. 23, 2024 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par of $10 plus 1.25 times the index return, subject to a maximum return of 53.27%.
The payout will be par plus the absolute value of the return of the index if the index declines by 20% or less.
Investors will lose 1% for every 1% that the index may decline beyond 20%.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Notes
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Underlying index: | S&P 500
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Amount: | $44,397,230
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Maturity: | Feb. 23, 2024
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the index return is positive, par plus 1.25 times the index return, subject to a maximum return of 53.27%; par plus the absolute value of the return of the index if the index declines by 20% or less; 1% loss for every 1% that the index may decline beyond 20%
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Initial index level: | 2,774.88
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Final index level: | Average of index’s closing levels on five trading days ending Feb. 20, 2024
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Pricing date: | Feb. 21
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Settlement date: | Feb. 28
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Underwriter: | BofA Merrill Lynch
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Fees: | 2.5%
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Cusip: | 40436A461
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