New Issue: HSBC prices $14.2 million Stars linked to S&P 500 via BofA

By Angela McDaniels

Tacoma, Wash., Oct. 28 – HSBC USA Inc. priced $14.2 million of 0% Strategic Accelerated Redemption Securities due Nov. 10, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 6.75% if the index closes at or above its initial level on April 21, 2017, July 21, 2017 or Nov. 3, 2017.

If the notes are not called and the final index level is greater than or equal to the threshold level, 95% of the initial index level, the payout will be par. Otherwise, investors will lose 1% for every 1% that the index declines beyond 5%.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$14,202,590
Maturity:	Nov. 10, 2017
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final index level is greater than or equal to threshold level, par; otherwise, 1% loss for every 1% that index declines beyond 5%
Call:	At par plus 6.75% per year if index closes at or above initial level on April 21, 2017, July 21, 2017 or Nov. 3, 2017
Initial index level:	2,139.43
Threshold value:	2,032.46, 95% of initial level
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	40435C104

© 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.