Published on 2/3/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.49 million capped trigger gears on index basket
By Wendy Van Sickle
Columbus, Ohio, Feb. 3 – HSBC USA Inc. priced $8.49 million of 0% capped trigger gears due Jan. 31, 2023 linked to an unequally-weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus 5 times the basket return, capped at par plus 34.75%.
Investors will receive par if the basket declines by 25% or less and be fully exposed to the basket’s decline from its initial level if it declines by more than 25%.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
Issuer: | HSBC USA Inc.
|
Issue: | Capped trigger gears
|
Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
|
Amount: | $8,485,720
|
Maturity: | Jan. 31, 2023
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | Par plus 5 times any basket gain, capped at par plus 34.75%; par if basket declines by 25% or less; full exposure to basket’s decline from its initial level if it declines by more than 25%
|
Initial levels: | 3,736.36 for Stoxx, 7,483.57 for FTSE, 23,379.4 for Nikkei, 10,859.88 for Swiss, 7,031.523 for S&P/ASX and 27,160.63 for Hang Seng
|
Pricing date: | Jan. 29
|
Settlement date: | Jan. 31
|
Underwriter: | HSBC Securities (USA) Inc., UBS Financial Services Inc.
|
Fees: | 1.25%
|
Cusip: | 40438B251
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.