New Issue: HSBC sells $838,000 digital dual directional barrier notes on index, ETF basket

By Marisa Wong

Morgantown, W.Va., Aug. 29 – HSBC USA Inc. priced $838,000 of 0% digital dual directional barrier notes due Aug. 28, 2023 linked to a basket of three indexes and an exchange-traded fund, according to a 424B2 filed with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the Euro Stoxx 50 index with a 20% weight and the iShares MSCI Emerging Markets ETF with a 20% weight.

If the basket return is at least negative 40%, the payout at maturity will be par plus the basket return, subject to a minimum return of 16.3%.

If the basket return is less than negative 40%, the payout will be par plus the basket return with full exposure to losses.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Digital dual directional barrier securities
Underlying basket:	S&P 500 index (40% weight), Russell 2000 index (20% weight), Euro Stoxx 50 index (20% weight) and iShares MSCI Emerging Markets ETF (20% weight)
Amount:	$838,000
Maturity:	Aug. 28, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If the basket return is at least negative 40%, par plus the basket return, subject to a minimum return of 16.3%; if the basket return is less than negative 40%, par plus the basket return with full exposure to losses
Initial levels:	2,861.82 for S&P, 1,722.542 for Russell, 3,420.18 for Stoxx and $43.28 for ETF
Pricing date:	Aug. 22
Settlement date:	Aug. 27
Agent:	HSBC Securities (USA) Inc.
Fees:	0.625%
Cusip:	40435FX44

© 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.