Published on 8/16/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.51 million notes with asset allocation feature linked to indexes
By Angela McDaniels
Tacoma, Wash., Aug. 16 – HSBC USA Inc. priced $4.51million of 0% buffered participation securities due Aug. 19, 2019 with an asset allocation feature 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, the Russell 2000 index and the S&P 500 index. The index with the highest return will be given a 40% weight in the basket, the index with the next-highest return will be given a 35% weight, and the index with the lowest return will be given a 25% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus the basket return. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that the basket may decline beyond 10%.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered participation securities with an asset allocation feature
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Index weights: | Index with highest return will be given 40% weight, index with next-highest return will be given 35% weight, and index with lowest return will be given | 25% weight
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| Amount: | $4,514,160
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| Maturity: | Aug. 19, 2019
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket return is greater than zero, par plus basket return; par if basket declines by 10% or less; 1% loss for every 1% that basket may decline beyond 10%
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| Initial index levels: | 3,044.94 for Euro Stoxx 50, 1,229.82 for Russell 2000 and 2,184.05 for S&P 500
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| Pricing date: | Aug. 12
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| Settlement date: | Aug. 17
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| Underwriter: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 3%
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| Cusip: | 40434V228
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