Published on 8/31/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.7 million seven-year income plus notes tied to five stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 31 – HSBC USA Inc. priced $1.7 million of income plus notes due Aug. 31, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The reference stocks are Bristol-Myers Squibb Co., Ford Motor Co., McDonald’s Corp., Philip Morris International Inc. and Wal-Mart Stores, Inc.
The interest rate will be 1% plus (a) 4.5% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise. Interest is payable annually.
The payout at maturity will be par plus the last coupon payment.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Income plus notes
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| Underlying stocks: | Bristol-Myers Squibb Co. (NYSE: BMY), Ford Motor Co. (NYSE: F), McDonald’s Corp. (NYSE: MCD), Philip Morris International Inc. (NYSE: PM) and Wal-Mart Stores, Inc. (NYSE: WMT)
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| Amount: | $1,696,000
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| Maturity: | Aug. 31, 2023
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| Coupon: | 5.5% if each basket stock closes at or above initial share price on valuation date or 4.5% otherwise; payable annually
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| Price: | Par
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| Payout at maturity: | Par plus last coupon
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| Initial share prices: | $58.77 for Bristol-Myers, $12.38 for Ford, $114.44 for McDonald’s, $99.10 for Philip Morris, $71.14 for Wal-Mart
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40433USC1
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