Published on 9/26/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.35 million dual directional barrier notes on Stoxx 50, EAFE ETF
By Marisa Wong
Morgantown, W.Va., Sept. 26 – HSBC USA Inc. priced $1.35 million of 0% dual directional barrier notes due Sept. 7, 2021 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each underlying finishes above its initial level, the payout at maturity will be par plus 2.2 times the gain of the lesser-performing underlying.
If either underlying falls but neither falls by more than 25%, the payout will be par plus the absolute value of the return of the lesser-performing underlying.
Otherwise, investors will lose 1% for every 1% decline of the lesser-performing underlying from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional barrier notes
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| Underlyings: | iShares MSCI EAFE ETF and Euro Stoxx 50 index
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| Amount: | $1,348,000
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| Maturity: | Sept. 7, 2021
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If each underlying finishes above its initial level, par plus 2.2 times the gain of the lesser-performing underlying; if either underlying falls but neither falls by more than 25%, par plus the absolute value of the return of the lesser-performing underlying; otherwise, 1% loss for every 1% decline of the lesser-performing underlying from its initial level
|
| Initial values: | $67.34 for ETF and 3,392.90 for index
|
| Trigger values: | $50.505 for ETF and 2,544.675 for index; 75% of initial values
|
| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40435FT23
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