New Issue: Nomura prices $12.85 million capped accelerated return notes on basket of BDCs, REITs

By Tali Rackner

Norfolk, Va., Oct. 15 – Nomura America Finance, LLC priced $12.85 million of 0% capped accelerated basket return securities due Oct. 21, 2019 linked to a basket of 10 common stocks issued by business development companies and real estate investment trusts, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the common stocks of Apollo Commercial Real Estate Finance, Inc. with a 10% weight, Apollo Investment Corp. with a 10% weight, Ares Capital Corp. with an 18% weight, Ares Commercial Real Estate Corp. with a 7% weight, BlackRock Capital Investment Corp. with an 11% weight, Blackstone Mortgage Trust, Inc. with a 5% weight, FS Investment Corp. with a 15% weight, Hercules Technology Growth Capital, Inc. with a 5% weight, Starwood Property Trust, Inc. with a 14% weight and TPG Specialty Lending, Inc. with a 5% weight.

If the basket value is at least 55% of the initial value on each day during the life of the notes, the payout at maturity will be par of $1,000 plus twice the return, subject to a minimum cash settlement of $200 per $1,000 principal amount and a maximum cash settlement of $2,200 per $1,000 principal amount.

If the basket value is less than 55% of the initial value at any time during the life of the notes, a participation trigger will occur and the payout at maturity will be zero.

The final value will be the average of the daily volume-weighted averages for the five trading days ending Oct. 16, 2019.

The basket components are subject to a multiplier, which is adjusted so that ordinary cash dividends are reinvested.

Nomura Securities International, Inc. is the agent.

Issuer:	Nomura America Finance, LLC
Guarantor:	Nomura Holdings, Inc.
Issue:	Capped accelerated return notes
Underlying stocks:	Apollo Commercial Real Estate Finance, Inc. (10% weight), Apollo Investment Corp. (10% weight), Ares Capital Corp. (18% weight), Ares Commercial Real Estate Corp. (7% weight), BlackRock Capital Investment Corp. (11% weight), Blackstone Mortgage Trust, Inc. (5% weight), FS Investment Corp. (15% weight), Hercules Technology Growth Capital, Inc. (5% weight), Starwood Property Trust, Inc. (14% weight) and TPG Specialty Lending, Inc. (5% weight)
Amount:	$12.85 million
Maturity:	Oct. 21, 2019
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	If basket never closes below 55% trigger level, par plus 200% of return, positive or negative, subject to floor of $200 per note and capped at $2,200 per note; otherwise, zero
Pricing date:	Oct. 14
Settlement date:	Oct. 19
Agent:	Nomura Securities International, Inc.
Fees:	None
Cusip:	65539ACD0

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