Published on 5/30/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $22.2 million enhanced market-linked step-up notes with buffer on S&P 500
By Wendy Van Sickle
Columbus, Ohio, May 30 – HSBC USA Inc. priced $22.2 million of 0% enhanced market-linked step-up notes with buffer due May 27, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above the step-up level – 125.9% – the payout at maturity will be par plus the gain.
If the index finishes at or below the step-up level but at or above the 90% threshold level, the payout will be par plus the step-up return of 25.9%
Investors will be exposed to any losses beyond 10%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Enhanced market-linked step-up notes with buffer
|
| Underlying index: | S&P 500
|
| Amount: | $22,202,530
|
| Maturity: | Ma 27, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up level, par plus index gain; if index finishes at or above 90% of initial level but at or below step-up value, par plus 56.4%; exposure to losses beyond 10%
|
| Initial level: | 2,415.07
|
| Step-up value: | 3,040.57, 125.9% of initial level
|
| Threshold value: | 2,173.56, 90% of starting value
|
| Pricing date: | May 25
|
| Settlement date: | June 2
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2.5%
|
| Cusip: | 40435D656
|
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