US Equities Series 3
US Big Tech Stocks
US Equities Series 3: US Big Tech Stocks
The Anadara US Equities Series 3: US Big Tech notes pays regular income to investors during the investment term with the opportunity to buy one of the Reference Assets at a discount to the price it was trading on the Commencement Date at Maturity.
The recent performance of the SP500 has been marked by a mixture of resilience and volatility. Throughout 2023 and into 2024, the index has navigated a challenging environment characterised by high inflation, aggressive interest rate hikes and concerns about a potential economic slowdown. Despite these headwinds, the SP500 has demonstrated surprising strength, buoyed by the technology sector. With big tech stocks pushing the SP500 to recent highs, many investors are expecting large tech stocks to pull back. Add to this the pending US Election which is expected to bring an increase in volatility to US markets, it can be difficult for investors to decide when to invest the market.
For investors that would prefer to be invested in the stock market, they need to decide if they invest now and risk a near term pullback or wait on the sidelines and risk missing out on further gains.
Strategic Yielding Notes offer the best of both worlds, a high yielding note that pays regular income and only converts to equity if one of the underlying stocks falls below the Strike Price over the Investment Term. If all four Underlying Stocks are trading above the Strike Price at Maturity, investors receive their principal investment back.
We’re pleased to present investors with the second series of our Strategic Yielding Notes. This series is linked to four of the largest tech companies in the world and includes the following features:
- Fixed Coupon: 24% per annum
- Underlying Stocks: NVDA, META, MSFT, TLSA
- Strike Price: 90%
- Investment Term: 6 months
- Settlement Currency: US Dollars (USD)
Investors will receive a fixed coupon*, which is paid monthly during the Investment Term. At Maturity, investors either receive their Principal Investment back as cash*, or their Principal Investment will be used to buy shares in the worst performing Underlying Stock if they’re trading below the Strike Price at Maturity.
There is also the possibility of early maturity memory feature – if all four underlying stocks have traded higher than their Starting Price on any of the Observation Dates, the investment will Mature early – investors will keep all Coupon payments they received between the Commencement Date and the early Maturity Date, plus they will receive their Principal Investment back as cash*.
This investment may suit investors that would prefer to be invested in the market, particularly in one of the Underlying Stocks, but fear the market will fall during the investment term. This investment provides regular, monthly income* until Maturity, regardless of how volatile the Underlying Stocks are performing.
*All coupons and returns associated with this offer are exposed to currency risk – any changes between the AUD and USD WILL have an impact on returns.
Please consult your Adviser before deciding to invest in this product.
| Features | US Equities Series 3 |
|---|---|
| Reference Assets | NVDA, MSFT, META, TLSA (Share Basket) |
Fixed Coupon | 24% per annum |
| Strike Price | 90% |
| Memory Feature | Yes |
| Minimum Investment Term | 3 months |
| Maximum Investment Term | 6 Months |
| Offer Open Date | 6 September 2024 |
| Offer Close Date | 20 September 2024 |
| Commencement Date | 27 September 2024 |
| Observation Dates | (2024) 27 December* |
| Maturity Date | 27 March 2025* |
| Minimum Investment Amount | A$10,000 |
| Settlement Currency | US Dollars (USD) |
- All dates are subject subject to change. Final Dates will be communicated to investors on the Commencement Date.
Anadara US Equities Series 3 – US Big Tech Companies
| Date | Memory Feature Triggered | Strike Hit | Coupon Paid |
|---|---|---|---|
| TBC | NA | NA | NA |
| TBC | NA | NA | NA |
| Event | Date |
|---|---|
| Open Date | 6 September 2024 |
| Close Date | 20 September 2024 |
| Funds Due Date | 20 September 2024 |
| Issue Date | 27 September 2024 or as soon as reasonably practicable |
| Maturity Date | 27 September 2025 |
| Minimum Investment Term | 3 months |
| Maximum Investment Term | 6 months commencing on the Issue Date. |
| Buy-Back Dates | Daily on any Business Day during the Investment Term. Investors must lodge their Issuer Buy-Back Form before 3pm Sydney time on the relevant the relevant Buy-Back Date. |
| Settlement Date | 10 Business Days after the Maturity Date, or such other date as determined by the Issuer in its discretion as is reasonably necessary for the Issuer to fulfil its obligations under the Terms. |
This offer is for Wholesale Investors Only.
Investors interested in Anadara US Equities Series 3 must read the Term Sheet IM in full before investing. Any advice given is general in nature only and does not consider your personal needs or objectives. Please consult your advisor before investing.
This investment carries risk – you may lose your capital.
Before investing, potential investors should make sure they understand the risks. Investors should read all of the Term Sheet IM and should consult an independent financial, legal and tax adviser before investing.
This Offer does not take into account a potential investor’s own financial needs, investment goals or financial circumstances.
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INVESTORS ARE ADVISED TO CAREFULLY CONSIDER ADDITIONAL INVESTMENT RISKS ASSOCIATED WITH THIS INVESTMENT, INCLUDING BUT NOT LIMITED TO THE FOLLOWING. INVESTORS ARE URGED TO CONSULT WITH THEIR LEGAL, REGULATORY, INVESTMENT, ACCOUNTING, TAX AND OTHER ADVISORS WITH REGARD TO ANY PROPOSED OR ACTUAL INVESTMENT IN THESE NOTES. Investors may receive an amount substantially less than the capital invested or, in extreme circumstances, zero. Investors should not purchase the Securities unless they accept the risk of losing all their initial investment. Investors should note that if the is below the , then Physical Settlement (i.e. the Issuer will redeem the Securities by physical delivery of the Share Amount of the Final Worst Performing Share and payment of the Fractional Cash Amount) will apply at maturity of the Securities. If investors decide to sell the Share Amount of the Final Worst Performing Share at the current market price, investors may suffer losses. Investor returns will be affected by currency movements. This investment settles in USD, so all Coupon payments and the final redemption amount will be adjusted for movements of the FXInitial, FXObservation, and FXFinal. If the AUD strengthens against the USD during the Investment Term, investors will receive returns less than the quoted returns. The Issuer may make such adjustment to the Securities as it may, in its sole and absolute discretion, determine to be appropriate, under a variety of conditions and/or circumstances set forth in the Asset Terms and Conditions for Equity-linked Securities and these Final Terms, such as, upon the occurrence of: (i) Potential Adjustment Event (e.g. share subdivision, bonus issue, right issue or an event having a diluting or concentrating effect on the theoretical value of a Share); or (ii) a Merger Event, a Tender Offer, a Nationalisation, a Delisting, an Insolvency, an Additional Disruption Event, a Jurisdictional Event or a subsequent correction of a published Share Price in respect of a Share or a Share Issuer. The Issuer has the sole and absolute discretion to make adjustment and determination as it considers appropriate, and any such discretion exercised by the Issuer shall be binding on the investors. The Issuer will not consider individual circumstances in exercising discretion. The Issuer may early redeem the Securities prior to the Maturity Date upon notice to investors under a variety of conditions and/or circumstances set forth in the Asset Terms and Conditions for Equity-linked Securities and these Final Terms, such as (i) illegality in respect of its performance of its obligations under the Securities or any relevant hedging arrangements or upon the occurrence of a Tax Event or a Regulatory Event or (ii) upon the occurrence of a Merger Event, a Tender Offer, a Nationalisation, a Delisting, an Insolvency or an Additional Disruption Event (e.g. a Change in Law or an Insolvency Filing). If the Issuer elects to early redeem the Securities, each Security will be redeemed at the Early Payment Amount. In addition, investors may, by notice in writing given to the Fiscal Agent at its specified office, declare the Securities immediately due and payable in case of an Event of Default under conditions and/or circumstances set forth in the Base Programme Document. Please refer to General Condition 8 of the Base Programme Document for more details. Furthermore, the Securities will be early redeemed upon the occurrence of a Knockout Event on any Knockout Observation Date, resulting in the payment of a Knockout Redemption Amount per Security on the Knockout Redemption Date corresponding to the relevant Knockout Observation Date on which a Knockout Event has first occurred. The performance of Shares is unpredictable. It is dependent upon macroeconomic factors, such as interest and price levels on the capital markets, currency developments, political factors as well as company-specific factors such as creditworthiness of the Share Issuer, earnings position, market position, risk situation, shareholder structure and distribution policy, which may in turn adversely affect the value of the Securities. Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty. This investment is subject to currency risk. If the AUD performs well against the USD, your returns will be reduced. |
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