Published on 2/4/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.97 million trigger jump notes linked to S&P 500
By Angela McDaniels
Tacoma, Wash., Feb. 4 – HSBC USA Inc. priced $5.97 million of 0% trigger jump securities due Feb. 3, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par of $10 plus the greater of the index return and 49.5%. Investors will receive par if the index declines by 35% or less and will be exposed to losses from the initial level if the index declines by more than 35%.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Smith Barney.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger jump securities
|
| Underlying index: | S&P 500
|
| Amount: | $5,970,470
|
| Maturity: | Feb. 3, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index return is positive, par plus greater of index return and 49.5%; par if index’s final level is less than initial level but greater than or equal to trigger level; exposure to losses from initial level if final index level is less than trigger level
|
| Initial index level: | 1,940.24
|
| Downside threshold: | 1,261.16, 65% of initial index level
|
| Pricing date: | Jan. 29
|
| Settlement date: | Feb. 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Smith Barney
|
| Fees: | 3.5%
|
| Cusip: | 40434K164
|
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