Published on 2/26/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $25.88 million Leveraged Index Return Notes on index basket
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – HSBC USA Inc. priced $25.88 million of 0% Leveraged Index Return Notes due Feb. 28, 2020 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 40% weight, the FTSE 100 index and the Nikkei 225 index each with a 20% weight, the Swiss Market index and the S&P/ASX 200 index each with a 7.5% weight and the Hang Seng index with a 5% weight.
If the basket return is positive, the payout at maturity will be par plus 204% of the basket gain.
Investors will be fully exposed to any basket decline.
BofA Merrill Lynch is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged Index Return Notes
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Underlying indexes: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei Stock Average (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
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Amount: | $25,876,480
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Maturity: | Feb. 28, 2020
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 204% of any basket gain; full exposure to any basket decline
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Final basket level: | Average of basket’s closing levels on five trading days ending Feb. 25, 2020
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Initial levels: | 3,431.99 for Euro Stoxx 50; 7,252.39 for FTSE 100; 21,736.44 for Nikkei 225; 8,967.43 for Swiss Market; 5,950.881 for S&P/ASX 200; 30,965.68 for Hang Seng
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Pricing date: | Feb. 22
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Settlement date: | March 1
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Underwriter: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 40435J190
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