HSBC now to price barrier digital return notes tied to three indexes

By Devika Patel

Knoxville, Tenn., Dec. 24 – HSBC USA Inc. added another index to its 0% barrier digital return notes due March 2, 2020, which will now be linked to the lesser performing of the Euro Stoxx 50 index, the S&P 500 index and the Russell 2000 index, according to an FWP filed with the Securities and Exchange Commission. The notes were announced on Dec. 21 and were originally set to be linked only to the Euro Stoxx 50 index and the Russell 2000 index.

A trigger event will occur if either index closes below 70% of its respective initial level during the life of the notes.

If no trigger event occurs, the payout at maturity will be par plus the digital return, which is expected to be at least 7.75% and will be set at pricing. In the original announcement, the digital return was to have been at least 8.75%.

If a trigger event occurs and each index finishes above its initial level, the payout at maturity will be par.

Otherwise, investors will lose 1% for each 1% decline in the worst performing index.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435UDX9) are expected to price on Jan. 28 and settle on Jan. 31.

© 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.