New Issue: HSBC prices $40,000 buffered market participation notes tied to basket

By Devika Patel

Knoxville, Tenn., March 28 – HSBC USA Inc. priced $40,000 of 0% buffered market participation securities due April 1, 2019 linked to a basket of two indexes and two exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight.

The payout at maturity will be par plus any basket gain.

Investors will receive par if the basket falls by up to 13% and will lose 1% for every 1% decline beyond the buffer.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered market participation securities
Underliers:	S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight
Amount:	$40,000
Maturity:	April 1, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus basket gain; par if basket falls by up to 13%, otherwise full exposure to declines beyond 13%
Initial share prices:	2,035.94 for S&P 500, 1,079.537 for Russell 2000, $56.35 for EAFE, $33.36 for Emerging Markets
Pricing date:	March 24
Settlement date:	March 30
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40433UJZ0

© 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.