Published on 7/30/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $7.74 million contingent return optimization notes linked to S&P 500
By Toni Weeks
San Luis Obispo, Calif., July 30 – HSBC USA Inc. priced $7.74 million of 0% contingent return optimization securities due July 31, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final index level is at least 80% of the initial level, the payout at maturity will be par of $10 plus the greater between 6% and the index return, subject to a maximum return of 36%.
If the final index level is less than 80% of the initial level, investors will be fully exposed to the decline.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Contingent return optimization securities
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Underlying index: | S&P 500 index
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Amount: | $7,736,900
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Maturity date: | July 31, 2017
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final index level is at least 80% of initial level, par plus greater of 6% and index return, capped at 36%; full exposure to losses
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Initial level: | 1,978.91
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Trigger level: | 1,583.13, 80% of initial level
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Pricing date: | July 28
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Settlement date: | July 31
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40434C287
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