Published on 2/27/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.28 million Stars linked to S&P 500, Euro Stoxx 50
By Angela McDaniels
Tacoma, Wash., Feb. 27 - HSBC USA Inc. priced $5.28 million of 0% Strategic Accelerated Redemption Securities due March 9, 2015 linked to a basket of two equally weighted indexes, according to a 424B5 filing with the Securities and Exchange Commission.
The underlying indexes are the S&P 500 index and the Euro Stoxx 50 index.
BofA Merrill Lynch is the agent.
The notes will be called at par of $10 plus a call premium of 6% per year if the basket closes at or above the initial level on Aug. 22, 2014, Nov. 21, 2014 or March 2, 2015.
The payout at maturity will be par if the final basket level is at least 95% of the initial basket level. Otherwise, investors will lose 1% for every 1% that the basket declines beyond 5%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying indexes: | S&P 500 and Euro Stoxx 50, equally weighted
|
| Amount: | $5,276,390
|
| Maturity: | March 9, 2015
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par if basket falls by up to 5%; 1% loss for every 1% decline beyond 5%
|
| Call: | At par plus 6% per year if basket closes at or above initial level on Aug. 22, 2014, Nov. 21, 2014 or March 2, 2015
|
| Initial index levels: | 1,845.12 for S&P 500 and 3,157.48 for Euro Stoxx 500
|
| Pricing date: | Feb. 25
|
| Settlement date: | March 5
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 40434B263
|
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