Published on 3/3/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.58 million income notes linked to basket of 20 stocks
By Marisa Wong
Morgantown, W.Va., March 3 – HSBC USA Inc. priced $8.58 million of income notes due Feb. 28, 2022 linked to a basket of 20 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Apple Inc., Amazon.com, Inc., BlackRock, Inc., Celgene Corp., Delta Air Lines, Inc., the Walt Disney Co., Facebook, Inc., Ford Motor Co., Gilead Sciences, Inc., General Motors Co., Intel Corp., LinkedIn Corp., Altria Group, Inc., Merck & Co., Inc., Netflix, Inc., NIKE, Inc., Nucor Corp., NXP Semiconductors NV, Whirlpool Corp. and Exxon Mobil Corp.
If at least 14 of the 20 stocks close at or above their respective initial share prices on the relevant valuation date, the interest rate for that year will be 4.5%. Otherwise, it will be 0.5% for that year. Interest is payable annually.
The payout at maturity will be par of $10 plus the last interest payment.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Income notes
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| Underlying stocks: | Apple Inc. (Symbol: AAPL), Amazon.com, Inc. (Symbol: AMZN), BlackRock, Inc. (Symbol: BLK), Celgene Corp. (Symbol: CELG), Delta Air Lines, Inc. (Symbol: DAL), the Walt Disney Co. (Symbol: DIS), Facebook, Inc. (Symbol: FB), Ford Motor Co. (Symbol: F), Gilead Sciences, Inc. (Symbol: GILD), General Motors Co. (Symbol: GM), Intel Corp. (Symbol: INTC), LinkedIn Corp. (Symbol: LNKD), Altria Group, Inc. (Symbol: MO), Merck & Co., Inc. (Symbol: MRK), Netflix, Inc. (Symbol: NFLX), NIKE, Inc. (Symbol: NKE), Nucor Corp. (Symbol: NUE), NXP Semiconductors NV (Symbol: NXPI), Whirlpool Corp. (Symbol: WHR) and Exxon Mobil Corp. (Symbol: XOM)
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| Amount: | $8,580,880
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| Maturity: | Feb. 28, 2022
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| Coupon: | 4.5% if at least 14 of the 20 stocks close at or above their respective initial share prices on the relevant valuation date; otherwise, 0.5%; payable annually
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon
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| Initial prices: | $96.76 for Apple, $555.15 for Amazon, $313.62 for BlackRock, $102.35 for Celgene, $49.20 for Delta, for $95.65 for Disney, $12.39 for Facebook, $108.07 for Ford, $90.16 for Gilead, $29.50 for GM, $29.62 for Intel, $119.00 for LinkedIn, $62.38 for Altria, $51.00 for Merck, $94.53 for Netflix, $62.38 for NIKE, $39.75 for Nucor, $70.90 for NXP, $151.87 for Whirlpool, $82.01 for Exxon
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| Pricing date: | Feb. 25
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| Settlement date: | March 3
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| Agent: | BofA Merrill Lynch
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| Fees: | 2.5%
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| Cusip: | 40434N820
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