By Wendy Van Sickle
Columbus, Ohio, Dec. 27 – HSBC USA Inc. priced $12.77 million of market-linked step-up notes due Dec. 20, 2019 linked to a basket of Asian indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Hang Seng China Enterprises index with an initial weight of 33.33%, the Kospi 200 index with an initial weight of 33.33% and the Taiwan Stock Exchange Capitalization Weighted index with an initial weight of 33.34%.
If the basket finishes above the step-up level – 124.6% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 24.6%.
Investors will be exposed to any losses.
The exact deal terms will be set at pricing.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market-linked step-up notes
|
| Basket components: | Hang Seng China Enterprises index (33.33% weight), Kospi 200 index (33.33% weight) and Taiwan Stock Exchange Capitalization Weighted index (33.34% weight)
|
| Amount: | $12,766,820
|
| Maturity: | Dec. 20, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| 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 24.6%; exposure to any decline
|
| observation date
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| Initial levels: | 11,596.94 for Hang Seng, 319.72 for Kospi, 10,488.97 for Taiwan Stock Exchange
|
| Step-up value: | 124.6% of initial basket level
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 29
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435H152
|
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