Published on 8/1/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.5 million leveraged buffered capped notes on indexes
By Marisa Wong
Morgantown, W.Va., Aug. 1 – HSBC USA Inc. priced $6.5 million of 0% leveraged buffered capped notes due July 31, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Tokyo Stock Price index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.
The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum settlement amount of $1,312 per $1,000 principal amount.
Investors will receive par if the basket falls by up to 10% and will lose 1.1111% for every 1% decline beyond 10%.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged buffered capped basket-linked notes
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Underlying basket: | Euro Stoxx 50 index with a 37% weight, FTSE 100 index with a 23% weight, Tokyo Stock Price index with a 23% weight, Swiss Market index with a 9% weight and S&P/ASX 200 index with an 8% weight
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Amount: | $6,495,000
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Maturity: | July 31, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 1.5 times any basket gain, up to a maximum settlement amount of $1,312 per $1,000 principal amount; par if the basket falls by up to 10%; 1.1111% loss for every 1% decline beyond 10%
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Initial levels: | 2,978.90 for Euro Stoxx, 6,724.03 for FTSE, 1,306.94 for Topix, 8,227.20 for Swiss Market and 5,537.474 for S&P/ASX
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Pricing date: | July 26
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Settlement date: | Aug. 2
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40433URU2
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