New Issue: HSBC prices $5 million digital return notes linked to S&P 500

By William Gullotti

Buffalo, N.Y., April 20 – HSBC USA Inc. priced $5 million of 0% digital return notes due May 2, 2024 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above 85% of its initial level, the payout at maturity will be par plus 9.1%.

Otherwise, investors will lose 1.1765% for each 1% decline of the index beyond the 15% buffer.

HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC are acting as placement agents.

Issuer:	HSBC USA Inc.
Issue:	Digital return notes
Underlying index:	S&P 500 index
Amount:	$5 million
Maturity:	May 2, 2024
Coupon:	0%
Price:	Par
Payout at maturity:	If the index gains or falls by not more than 15%, par plus 9.1%; otherwise, 1.1765% loss for each 1% decline of the index beyond 15%
Initial level:	4,137.64
Downside threshold:	85% of initial level
Strike date:	April 14
Pricing date:	April 17
Settlement date:	April 20
Agent:	HSBC Securities (USA) Inc.
Placement agents:	JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC
Fees:	1%
Cusip:	40441X5G1

© 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.