Published on 4/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.43 million annual income opportunity notes linked to 10 common stocks
By Devika Patel
Knoxville, Tenn., April 2 – HSBC USA Inc. priced $3.43 million of annual income opportunity notes due March 6, 2025 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Cisco Systems, Inc., Walt Disney Co., Alphabet Inc., Honeywell International Inc., Intel Corp., 3M Co., Microsoft Corp., PepsiCo, Inc., Travelers Cos., Inc. and Walmart Inc.
Interest is payable annually and will equal the average of the performances of the basket stocks with a floor of 0%.
A stock's performance will be equal to the auto cap rate, 9.4%, if its return is greater than or equal to zero. If a stock's return is negative, the coupon will be 0%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Annual income opportunity notes
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| Underlying stocks: | Cisco Systems, Inc., Walt Disney Co., Alphabet Inc., Honeywell International Inc., Intel Corp., 3M Co., Microsoft Corp., PepsiCo, Inc., Travelers Cos., Inc. and Walmart Inc.
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| Amount: | $3,425,000
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| Maturity: | March 6, 2025
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| Coupon: | Average of performances of basket stocks, subject to minimum interest rate of 0%; payable annually
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| Stock performance: | If stock's return is greater than or equal to zero, 9.4%; otherwise, 0%
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| Price: | Par
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| Payout at maturity: | Par
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| Initial levels: | $43.80 for Cisco, $102.57 for Disney, $1,069.52 for Alphabet, $147.21 for Honeywell, $47.84 for Intel, $231.34 for 3M, $92.85 for Microsoft., $108.12 for PepsiCo, $138.97 for Travelers and $89.08 for Walmart
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| Pricing date: | March 1
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| Settlement date: | March 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40435FVV6
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