Published on 8/17/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.23 million 6.53% contingent yield trigger autocalls on Dow, Russell
By Susanna Moon
Chicago, Aug. 17 – HSBC USA Inc. priced $4.23 million of trigger autocallable contingent yield notes due Aug. 15, 2023 linked to the least performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 6.53% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless either index finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the worse performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index
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| Amount: | $4,225,000
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| Maturity: | Aug. 15, 2023
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| Coupon: | 6.53% annualized, payable quarterly if each index closes at or above its 70% coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, 1% loss per 1% decline of worse performing index
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| Call: | At par if index closes at or above its initial level on each quarterly observation date beginning Aug. 12, 2019
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| Initial levels: | 25,313.14 for Dow, 1,686.804 for Russell
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| Trigger levels: | 17,719.20 for Dow, 1,180.763 for Russell; 70% of initial levels
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| Pricing date: | Aug. 10
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| Settlement date: | Aug. 15
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435X595
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