Published on 2/25/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.06 million income plus notes linked to five stocks with 1% minimum coupon
By Toni Weeks
San Luis Obispo, Calif., Feb. 25 - HSBC USA Inc. priced $1.06 million of income plus notes with minimum coupon due Feb. 26, 2021 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Altria Group, Inc., Bristol-Myers Squibb Co., ConocoPhillips, Kraft Foods Group, Inc. and McDonald's Corp.
If every underlying stock closes at or above its initial level on the valuation date, the coupon will be 9.5%. Otherwise, the notes will pay the minimum coupon of 1%. Interest is payable annually.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Income plus notes
|
| Underlying stocks: | Altria Group, Inc. (Symbol: MO), Bristol-Myers Squibb Co. (Symbol: BMY), ConocoPhillips (Symbol: COP), Kraft Foods Group, Inc. (Symbol: KRFT) and McDonald's Corp. (Symbol: MCD)
|
| Amount: | $1,058,000
|
| Maturity: | Feb. 26, 2021
|
| Coupon: | If every underlying stock finishes at or above initial level, 9.5%; otherwise, 1%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial prices: | $35.37 for Altria, $54.14 for Bristol-Myers, $64.68 for ConocoPhillips, $55.09 for Kraft and $96.45 for McDonald's
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
| Cusip: | 40432XSD4
|
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