Published on 4/1/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.22 million annual income opportunity notes linked to 10 stocks
By Susanna Moon
Chicago, April 1 - HSBC USA Inc. priced $3.22 million of annual income opportunity notes due March 31, 2021 linked to a basket of 10 equally weighted common stocks, according to an FWP filing with the Securities and Exchange Commission.
The underlying companies are Apple Inc., American Express Co., Bank of America Corp., Chevron Corp., Cisco Systems, Inc., ConocoPhillips, Eli Lilly and Co., Facebook, Inc., General Electric Co., Johnson & Johnson and Proctor & Gamble Co.
Interest is payable annually and will equal the greater of (a) the average of the performances of the basket stocks and (b) the minimum rate of 0%.
A stock's performance will be equal to the auto cap rate, 10.5%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 10%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Annual income opportunity notes with auto cap
|
| Underlying stocks: | Apple Inc., American Express Co., Bank of America Corp., Chevron Corp., Cisco Systems, Inc., ConocoPhillips, Eli Lilly and Co., Facebook, Inc., General Electric Co., Johnson & Johnson and Proctor & Gamble Co.
|
| Amount: | $3.22 million
|
| Maturity: | March 31, 2021
|
| Coupon: | Average of the performances of basket stocks, subject to a minimum interest rate of 0%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Stock performance: | If stock's return is greater than or equal to zero, 10.5%; otherwise, greater of stock return and negative 10%
|
| Pricing date: | March 27
|
| Settlement date: | March 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40432XWP2
|
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