By Angela McDaniels
Tacoma, Wash., April 27 – HSBC USA Inc. priced $30.18 million of 0% market-linked step-up notes due April 28, 2017 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the S&P/ASX 200 index with a 7.5% weight, the Swiss Market index with a 7.5% weight and the Hang Seng index with a 5% weight.
If the final basket level is greater than the step-up value, the payout at maturity will be par of $10 plus the basket return. The step-up value is 113.4% of the initial basket level.
If the final basket level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 13.4%.
If the final basket level is less than the initial level, investors will have one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market-linked step-up notes
|
| Underlying indexes: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), S&P/ASX 200 (7.5% weight), Swiss Market (7.5% weight) and Hang Seng (5% weight)
|
| Amount: | $30,181,370
|
| Maturity: | April 28, 2017
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final basket level is greater than 113.4% of initial level, par plus basket return; if final basket level is greater than or equal to initial level but less than or equal to 113.4% of initial level, par plus 13.4%; if final basket level is less than initial level, one-to-one exposure to decline
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40434G817
|
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