Published on 5/31/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $25.32 million market-linked step-up notes on index basket
By Wendy Van Sickle
Columbus, Ohio, May 31 – HSBC USA Inc. priced $25.32 million of market-linked step-up notes due July 26, 2019 linked to an international equity index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index with an initial weight of 20%, the Nikkei Stock Average index with an initial weight of 20%, the Swiss Market index with an initial weight of 7.5%, the S&P/ASX 200 index with an initial weight of 7.5% and the Hang Seng index with an initial weight of 5%.
If the basket finishes above the step-up level – 112.6% of the initial level – the payout at maturity will be par of $10 plus the basket gain.
If the basket gains by up to the step-up level, the payout will be par plus the step-up payment of 12.6%.
Investors will be exposed to any basket decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market-linked step-up notes
|
| Basket components: | 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) and Hang Seng index (5% weight)
|
| Amount: | $25,316,490
|
| Maturity: | July 26, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes above the step-up level, par plus the gain; if basket gains up to the step-up level, par plus 12.6%; exposure to any basket decline
|
| Initial levels: | 3,478.77 for Euro Stoxx, 1,209.34 for MSCI EM, 7,334.98 for FTSE, 22,682.08 for Nikkei, 9,100.39 for Swiss, 6,026.231 for S&P/ASX, 32,245.22 for Hang Seng
|
| Step-up value: | 112.6% of initial basket level
|
| Pricing date: | May 24
|
| Settlement date: | June 1
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435M557
|
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