Published on 6/3/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.2 million leveraged buffered notes on S&P MidCap, Russell
By Marisa Wong
Madison, Wis., June 3 - HSBC USA Inc. priced $1.2 million of 0% leveraged buffered uncapped market participation securities due June 4, 2019 linked to the S&P MidCap 400 index with a 75% weight and the Russell 2000 index with a 25% weight, according to an FWP with the Securities and Exchange Commission.
If the basket return is positive, the payout at maturity will be par plus 1.2 times the return.
Investors will receive par if the basket declines by up to the 25% buffer amount and will lose 1.3333% for every 1% that the basket declines beyond the buffer.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Leveraged buffered uncapped market participation securities
|
| Underlying indexes: | S&P MidCap 400 index (75% weight) and Russell 2000 index (25% weight)
|
| Amount: | $1,197,000
|
| Maturity: | June 4, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is positive, par plus 1.2 times return; par if basket declines by up to 25%; 1.3333% loss for every 1% decline beyond buffer
|
| Initial levels: | 1,195.28 for S&P MidCap, 994.43 for Russell
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40432XFS5
|
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