Published on 5/18/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $878,000 contingent income autocallables on three indexes
By Susanna Moon
Chicago, May 18 – HSBC USA Inc. priced $878,000 of contingent income autocallable securities due May 19, 2023 linked to the worst performing of the Euro Stoxx 50 index, the Nikkei 225 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11% if each index closes at or above its initial level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level any of the first 27 determination dates.
The payout at maturity will be par plus any contingent coupon unless any index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Nikkei 225, Russell 2000, Euro Stoxx 50
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| Amount: | $878,000
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| Maturity: | May 19, 2023
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| Coupon: | 11%, payable quarterly if each index closes above coupon barrier
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| Price: | Par
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| Payout at maturity: | Par plus any contingent coupon unless any index finishes below trigger level, in which case full exposure to any losses of the worst performing index
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| Call: | At par plus the contingent coupon if each index closes at or above initial level any of the first 27 determination dates
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| Initial levels: | 16,466.40 for Nikkei, 1,116.212 for Russell, 2,951.39 for Stoxx
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| Coupon barrier: | 12,349.80 for Nikkei, 837.159 for Russell, 2,213.54 for Stoxx; 75% of initial levels
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| Downside threshold: | 9,056.52 for Nikkei, 613.917 for Russell, 1,623.26 for Stoxx; 55% of initial levels
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| Pricing date: | May 16
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| Settlement date: | May 19
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 3%
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| Cusip: | 40434N150
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