Published on 5/28/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.09 million income plus notes linked to five stocks
By Marisa Wong
Madison, Wis., May 28 - HSBC USA Inc. priced $2.09 million of income plus notes due June 1, 2021 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Bristol-Myers Squibb Co., ConocoPhillips, Kraft Foods Group Inc., McDonald's Corp. and Altria Group, Inc.
If every underlying stock closes above its initial price on a coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of 8%. Otherwise, the notes will pay the minimum coupon of 1%. Interest will be payable annually.
The payout at maturity will be par plus the last coupon payment.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Income plus notes
|
| Underlying stocks: | Bristol-Myers Squibb Co., ConocoPhillips, Kraft Foods Group Inc., McDonald's Corp. and Altria Group, Inc.
|
| Amount: | $2,092,000
|
| Maturity: | June 1, 2021
|
| Coupon: | 9% if each basket stock closes at or above its initial share price on the valuation date or 1% otherwise; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon
|
| Initial share prices: | $48.79 for Bristol-Myers, $78.43 for ConocoPhillips, $58.15 for Kraft, $102.00 for McDonald's and $40.68 for Altria Group, Inc.
|
| Pricing date: | May 23
|
| Settlement date: | May 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
| Cusip: | 40432XZ87
|
© 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.
