By Marisa Wong
Morgantown, W.Va., Nov. 28 – HSBC USA Inc. sold $7.78 million of 0% capped Leveraged Index Return Notes due Nov. 21, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index and the Russell 2000 index, each with an initial weight of 50%.
The payout at maturity will be par of $10 plus 150% of any basket gain, subject to a maximum return of 22.25%.
If the basket falls by up to 5%, the payout will be par.
Investors will be fully exposed to any basket decline beyond 5%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped Leveraged Index Return Notes
|
| Underlying indexes: | S&P 500 and Russell 2000, each with 50% weight
|
| Amount: | $7,783,940
|
| Maturity: | Nov. 21, 2018
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 150% of any basket gain, capped at 22.25%; par if basket falls by up to 5%; exposure to declines beyond 5%
|
| Initial levels: | 2,202.94 for S&P, 1,334.341 for Russell
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 30
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435B262
|
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