Published on 4/23/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.23 million buffered market participation securities linked to ETF basket
By Angela McDaniels
Tacoma, Wash., April 23 - HSBC USA Inc. priced $1.23 million of 0% buffered market participation securities due April 25, 2019 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares Russell 3000 ETF with a 50% weight, the iShares MSCI EAFE ETF with a 35% weight and the iShares MSCI Emerging Markets ETF with a 15% weight.
The payout at maturity will be par plus any basket gain, up to a maximum return of 45%. Investors will receive par if the basket falls by up to 40% and will lose 1% for every 1% that it declines beyond 40%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered market participation securities
|
| Underlying ETFs: iShares Russell 3000 ETF (50% weight), iShares MSCI EAFE ETF (35% weight) and iShares MSCI Emerging Markets ETF (15% weight)
|
| Amount: | $1,234,000
|
| Maturity: | April 25, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus any basket gain, up to maximum return of 45%; par if basket falls by up to 40%; 1% loss for every 1% that basket declines beyond 40%
|
| Initial share prices: | $112.00 for iShares Russell 3000 ETF, $67.62 for iShares MSCI EAFE ETF and $41.75 for iShares MSCI Emerging Markets ETF
|
| Pricing date: | April 21
|
| Settlement date: | April 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40432XYK1
|
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