Published on 8/7/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.78 million buffered uncapped notes linked to ETF basket
By Angela McDaniels
Tacoma, Wash., Aug. 7 – HSBC USA Inc. priced $6.78 million of 0% Buffered Uncapped Market Participation Securities due Aug. 9, 2021 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 70% weight, the iShares MSCI EAFE exchange-traded fund with a 15% weight, the S&P MidCap 400 index with an 8% weight, the iShares MSCI Emerging Markets exchange-traded fund with a 4% weight and the Russell 2000 index with a 3% weight.
If the basket return is greater than zero, the payout at maturity will be par plus 120% of the basket return. If the basket return is less than or equal to zero but greater than or equal to negative 15%, the payout will be par. Otherwise, investors will lose 1% for every 1% that the basket declines beyond 15%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered Uncapped Market Participation Securities
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| Underlying basket: | S&P 500 index (70% weight), iShares MSCI EAFE ETF (15% weight), S&P MidCap 400 index (8% weight), iShares MSCI Emerging Markets ETF (4% weight) and Russell 2000 index (3% weight)
|
| Amount: | $6.78 million
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| Maturity: | Aug. 9, 2021
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is greater than zero, par plus 120% of basket return; if basket return is less than or equal to zero but greater than or equal to negative 15%, par; otherwise, 1% loss for every 1% that basket declines beyond 15%
|
| Initial levels: | $43.95 for EM ETF, $67.46 for EAFE ETF, 1,751.48 for S&P MidCap 400, 1,412.321 for Russell 2000 and 2,476.83 for S&P 500
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| Pricing date: | Aug. 4
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| Settlement date: | Aug. 9
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435FCM7
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