Published on 11/29/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $8.91 million capped notes with absolute return buffer on index basket
By William Gullotti
Buffalo, N.Y., Nov. 29 – HSBC USA Inc. priced $8.91 million of 0% capped notes with absolute return buffer due Nov. 29, 2024 linked to a weighted index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the FTSE China 50 index with a 5% weight.
The payout at maturity will be par of $10 plus any basket gain, subject to a maximum payout of par plus 20%.
If the basket finishes flat or falls by up to 23.6%, investors will receive par plus the absolute value of the basket return. Otherwise, investors will be exposed to losses beyond 23.6%.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped notes with absolute return buffer
|
| Underlying indexes: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight), FTSE China 50 index (5% weight)
|
| Amount: | $8,913,860
|
| Maturity: | Nov. 29, 2024
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any basket gain, capped at 20%; if basket falls by up to 23.6%, par plus absolute value of basket return; otherwise, 1% loss for every 1% decline beyond 23.6%
|
| Initial index levels: | 3,929.9 for Stoxx, 7,452.84 for FTSE, 28,115.74 for Nikkei, 11,074.3 for Swiss Market, 7,181.295 for S&P/ASX, 11,227.21 for FTSE China
|
| Threshold level: | 76.4% of initial value
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 30
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40439N155
|
|
|
© 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.
