Published on 4/2/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $12.46 million buffered jump notes linked to fund, index basket
By Angela McDaniels
Tacoma, Wash., April 2 - HSBC USA Inc. priced $12.46 million of 0% buffered jump securities due April 3, 2017 linked to a basket of three indexes and one exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 40% weight, the Euro Stoxx 50 index with a 30% weight, the Russell 2000 index with a 20% weight and the iShares MSCI Emerging Markets index fund with a 10% weight.
If the basket finishes above its initial level, the payout at maturity will be par of $10 plus the greater of the basket return and 23.5769%. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered jump securities
|
| Underlying basket: | S&P 500 index (40% weight), Euro Stoxx 50 index (30% weight), Russell 2000 index (20% weight) and iShares MSCI Emerging Markets index fund (10% weight)
|
| Amount: | $12,456,510
|
| Maturity: | April 3, 2017
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes above initial level, par plus greater of basket return and 23.5769%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond 10%
|
| Initial levels: | 1,569.19 for S&P 500; 2,624.02 for Euro Stoxx 50; 951.54 for Russell 2000; $42.78 for ETF
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 3%
|
| Cusip: | 40433T141
|
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