Published on 7/11/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10.65 million trigger callable contingent yield notes linked to three indexes
By Wendy Van Sickle
Columbus, Ohio, July 11 – HSBC USA Inc. priced $10.65 million of trigger callable contingent yield notes due July 14, 2020 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 8.5% per year if each index closes at or above its coupon barrier, 65% of its initial level, each day that quarter.
The notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger callable contingent yield notes
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Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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Amount: | $10.65 million
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Maturity: | July 14, 2020
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Coupon: | 8.5% per year, payable quarterly if each index closes at or above coupon barrier level on each day that quarter
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Price: | Par of $10
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Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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Call option: | At par on each quarterly observation date other than final one
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Initial levels: | 1,415.835 for Russell 2000, 2,425.18 for S&P 500 and 3,463.84for Euro Stoxx 50
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Coupon barriers: | 920.293 for Russell 2000, 1,576.37 for S&P 500 and 2,251.50 for Euro Stoxx 50; 65% of initial levels
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Downside thresholds: | 849.501 for Russell 2000, 1,455.11 for S&P 500 and 2,078.30 for Euro Stoxx 50; 60% of initial levels
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Pricing date: | July 7
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Settlement date: | July 14
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40435G501
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