Published on 7/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.47 million trigger PLUS linked to basket of indexes
By Sarah Lizee
Olympia, Wash., July 8 – HSBC USA Inc. priced $2.47 million of 0% trigger Performance Leveraged Upside Securities due July 1, 2022 linked to a basket that contains the S&P 500 index with a 60% weight, the Euro Stoxx 50 index with a 30% weight and the MSCI Emerging Markets index with a 10% weight, according to a 424B2 filing with the Securities and Exchange Commission.
If the basket finishes above its initial level, the payout at maturity will be par of $10 plus 175% of the basket return, subject to a maximum return of 38%.
If the basket finishes at or below its initial level but at or above its trigger level, the payout will be par. The trigger level is 75% of the initial basket level.
If the basket finishes below its trigger level, investors will be exposed to the basket’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is a dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger Performance Leveraged Upside Securities
|
| Underlying basket: | S&P 500 index (60% weight), Euro Stoxx 50 index (30% weight) and MSCI Emerging Markets index (10% weight)
|
| Amount: | $2,472,500
|
| Maturity: | July 1, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes above initial level, par plus 175% of basket return, subject to maximum return of 38%; if basket finishes at or below initial level but at or above trigger level, par; if basket finishes below trigger level, exposure to basket’s decline from initial level
|
| Initial levels: | 2,941.76 for S&P 500, 3,473.69 for Euro Stoxx 50 and 1,054.86 for MSCI Emerging Markets
|
| Pricing date: | June 28
|
| Settlement date: | July 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Selected dealer: | Morgan Stanley Wealth Management
|
| Fees: | 3%
|
| Cusip: | 40436B584
|
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