Published on 1/5/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $9.51 million six-month PLUS linked to index, ETF basket
By Wendy Van Sickle
Columbus, Ohio, Jan. 5 – HSBC USA Inc. priced $9.51 million of 0% Performance Leveraged Upside Securities due July 3, 2018 linked to a basket of three indexes and three exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the S&P MidCap 400 index (25% weight), the Euro Stoxx 50 index (15% weight), the Euro Stoxx Banks index (15% weight), the Market Vectors Gold Miners ETF (15% weight), the iShares U.S. Telecommunications ETF (15% weight), and the SPDR S&P Oil & Gas Exploration & Production ETF (15% weight).
The payout at maturity will be par of $10 plus 200% of any basket gain, up to a maximum return of 6.3%.
Investors will be exposed to any losses.
HSBC Securities (USA) Inc. is the agent, with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Performance Leveraged Upside Securities
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| Basket components: | S&P MidCap 400 index (25% weight), the Euro Stoxx 50 index (15% weight), the Euro Stoxx Banks index (15% weight), the Market Vectors Gold Miners ETF (15% weight), the iShares U.S. Telecommunications ETF (15% weight), and the SPDR S&P Oil & Gas Exploration & Production ETF (15% weight)
|
| Amount: | $9,508,600
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| Maturity: | July 3, 2018
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket return is positive, par of $10 plus double the basket return, subject to a maximum payment of $10.63 per PLUS; full exposure to losses
|
| Initial values: | 1,911.28 for MidCap, 3,524.31 for Stoxx 50, 131.27 for Stoxx Banks, $23.20 for Gold Miners, $29.67 for Telecommunications, $37.62 for Oil & Gas
|
| Pricing date: | Dec. 28
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| Settlement date: | Jan. 3
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2.25%
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| Cusip: | 40435J695
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