Published on 1/8/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $35.79 million capped Leveraged Index Return Notes on PHLX Housing Sector
By Toni Weeks
San Diego, Jan. 8 - HSBC USA Inc. priced $35.79 million of capped Leveraged Index Return Notes due Jan. 9, 2015 linked to the PHLX Housing Sector index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10.00 plus double any index gain, subject to a maximum return of 20.52%.
Investors will receive par if the index falls by up to 10% and will be exposed to any losses beyond 10%.
The final index level will be the average of the closing index levels on Dec. 30, 2014, Dec. 31, 2014, Jan. 2, 2015, Jan. 5, 2015 and Jan. 6, 2015.
Bank of America Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Capped Leveraged Index Return Notes
|
| Underlying index: | PHLX Housing Sector
|
| Amount: | $35,791,210
|
| Maturity: | Jan. 9, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus double any gain in the index, subject to cap of 20.52%; par if index falls by up to 10%, exposure to losses beyond 10%
|
| Initial level: | 178.85
|
| Threshold level | 160.97, 90% of initial value
|
| Final level: | Average of closing index levels on Dec. 30, 2014, Dec. 31, 2014, Jan. 2, 2015, Jan. 5, 2015 and Jan. 6, 2015
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 10
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40433T596
|
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