Published on 10/7/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.49 million income notes linked to 20 stocks
By Marisa Wong
Morgantown, W.Va., Oct. 7 – HSBC USA Inc. priced $5.49 million of income notes due Sept. 30, 2022 linked to the common stocks of Allergan plc, Anthem, Inc., AT&T Inc., Autozone, Inc., Broadcom Ltd., Comcast Corp., ConocoPhillips, Devon Energy Corp., Diamond Offshore Drilling, Inc., Dover Corp., Eli Lilly & Co., General Dynamics Corp., Lam Research Corp., MetLife, Inc., Newell Brands Inc., Paccar Inc., Qualcomm Inc., salesforce.com, inc., Simon Property Group, Inc. and Twenty-First Century Fox, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each year, the notes will pay a 4.8% coupon if at least 14 of the 20 stocks close at or above their initial share prices on the coupon determination date for that year. If less than 14 of the stocks close at or above their initial share prices, the coupon for that year will be 0.5%.
The payout at maturity will be par of $10 plus the final coupon payment.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Income notes
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| Underlying stocks: | Allergan plc, Anthem, Inc., AT&T Inc., Autozone, Inc., Broadcom Ltd., Comcast Corp., ConocoPhillips, Devon Energy Corp., Diamond Offshore Drilling, Inc., Dover Corp., Eli Lilly & Co., General Dynamics Corp., Lam Research Corp., MetLife, Inc., Newell Brands Inc., Paccar Inc., Qualcomm Inc., salesforce.com, inc., Simon Property Group, Inc. and Twenty-First Century Fox, Inc.
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| Amount: | $5,489,760
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| Maturity: | Sept. 30, 2022
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| Coupon: | 4.8% if at least 14 basket stocks close at or above initial share prices on coupon determination date; otherwise, 0.5%; payable annually
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon payment
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 6
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| Agent: | BofA Merrill Lynch
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| Fees: | 2.5%
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| Cusip: | 40435B783
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