By Angela McDaniels
Tacoma, Wash., Aug. 28 – HSBC USA Inc. priced $16.72 million of 0% market-linked step-up notes due Aug. 30, 2019 linked to a basket comprised of the Euro Stoxx 50 index with a 70% weight and the Euro Stoxx Mid index with a 30% weight, according to a 424B2 filing with the Securities and Exchange Commission.
If the final basket level is greater than the step-up value, the payout at maturity will be par of $10 plus the basket return. The step-up value is 126% of the initial basket level.
If the final basket level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 26%.
If the final basket level is less than the initial level, investors will have one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market-linked step-up notes
|
| Underlying indexes: | Euro Stoxx 50 (70% weight) and Euro Stoxx Mid (30% weight)
|
| Amount: | $16,715,700
|
| Maturity: | Aug. 30, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final basket level is greater than step-up value, par plus basket return; if final basket level is greater than or equal to initial level but less than or equal to step-up value, par plus 26%; if final basket level is less than initial level, exposure to decline
|
| Initial index levels: | 3,444.73 for Euro Stoxx 50 and 431.76 for Euro Stoxx Mid
|
| Step-up value: | 126% of initial basket level
|
| Pricing date: | Aug. 24
|
| Settlement date: | Aug. 31
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435G766
|
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