Published on 5/1/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.6 million digital notes linked to real, ruble, rupee
By Marisa Wong
Morgantown, W.Va., May 1 – HSBC USA Inc. priced $1.6 million of 0% digital notes due Oct. 26, 2018 linked to the performance of an equally weighted basket of three currencies relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Brazilian real, the Russian ruble and the Indian rupee.
If the basket return is positive or zero – meaning that the basket currencies, as a whole, strengthen or remain unchanged relative to the dollar – the payout at maturity will be par plus 18%.
If the basket return is negative but greater than or equal to negative 5%, the payout will be par.
If the basket return is less than negative 5%, investors will receive $950 per $1,000 principal amount.
HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Digital notes
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| Underlying basket: | Brazilian real, the Russian ruble and the Indian rupee; equally weighted; relative to dollar
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| Amount: | $1,595,000
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| Maturity: | Oct. 26, 2018
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the basket return is positive or zero, par plus 18%; if the basket return is negative but greater than or equal to negative 5%, par; if the basket return is less than negative 5%, $950 per $1,000 principal amount
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| Initial spot rates: | 3.1251 for real, 55.8585 for ruble, 64.4757 for rupee
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| Pricing date: | April 24
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| Settlement date: | April 26
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| Agent: | HSBC Securities (USA) Inc. with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
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| Fees: | 1.25%
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| Cusip: | 40433U3P9
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