Published on 12/10/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.45 million capped buffer gears tied to index basket
By Sarah Lizee
Olympia, Wash., Dec. 10 – HSBC USA Inc. priced $3.45 million of 0% capped buffer gears due Nov. 30, 2021 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus two times the basket return, subject to a maximum return of 24.9%. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that the basket declines beyond 10%.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Capped buffer gears
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| Underlying basket: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
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| Amount: | $3,453,350
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| Maturity: | Nov. 30, 2021
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket return is greater than zero, par plus two times basket return, subject to maximum return of 24.9%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond 10%
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| Initial levels: | 3,705.55 for Stoxx, 7,403.14 for FTSE, 23,373.32 for Nikkei, 10,506.93 for Swiss, 6,787.530 for S&P/ASX, 26,913.92 for Hang Seng
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| Pricing date: | Nov. 26
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| Settlement date: | Nov. 29
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40438B616
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