Published on 4/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2 million buffer gears linked to S&P 500, Russell 2000
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $2 million of 0% buffer gears due March 31, 2026 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the lesser performing index return is positive, the payout at maturity will be par of $10 plus 1.59 times the lesser performing index return. Investors will receive par if the lesser performing index falls by up to 25% and lose 1% for each 1% that the lesser performing index may decline beyond 25%.
HSBC Securities (USA) Inc. is the agent, and UBS Financial Services Inc. is acting as dealer.
Issuer: | HSBC USA Inc.
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Issue: | Buffer gears
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $2 million
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Maturity: | March 31, 2026
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 1.59 times any lesser performing index gain; par if lesser performing index falls by up to 25%; 1% loss for every 1% that lesser performing index declines beyond 25%
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Initial index levels: | 2,805.37 for S&P, 1,522.231 for Russell
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Downside thresholds: | 2,104.03 for S&P, 1,141.673 for Russell, 75% of initial level
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Pricing date: | March 27
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Settlement date: | April 1
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Agent: | HSBC Securities (USA) Inc.
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Dealer: | UBS Financial Services Inc.
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Fees: | 3.5%
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Cusip: | 40436B600
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