Published on 10/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.01 million trigger absolute return step notes on S&P 500
By Wendy Van Sickle
Columbus, Ohio, Oct. 2 – HSBC USA Inc. priced $5.01 million of 0% trigger absolute return step securities due Sept. 28, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes at or above its initial level, which is also the step barrier, the payout at maturity will be par of $10 plus the greater of the gain and the step return of 27.5%.
If the index falls by up to the downside threshold level, 75% of the initial level, the payout will be par plus the absolute value of the return.
Otherwise, investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger absolute return step securities
|
| Underlying index: | S&P 500
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| Amount: | $5,005,000
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| Maturity: | Sept. 28, 2023
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If each index gains, par plus greater of 27.5% and index return; if index falls by up to 25%, par plus absolute return; otherwise, 1% loss per 1% decline
|
| Initial index level: | 2,915.56
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| Downside threshold: | 2,186.67, 75% of initial level
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 28
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40435X165
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