Published on 4/27/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.02 million contingent return barrier autocallables on index, EM fund
By Susanna Moon
Chicago, April 27 – HSBC USA Inc. priced $2.02 million of autocallable barrier notes with contingent return due May 16, 2022 linked to the lesser performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annual premium of 14% if each asset closes at or above its redemption threshold on any review date.
The call threshold will be 100% of the initial level on the first observation date, stepping down to 97.5% on the second review date, to 95% on the third date and to 92.5% on the fourth date.
The payout at maturity will be par plus 10% unless either asset finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying assets: | Euro Stoxx 50 index and iShares MSCI Emerging Markets ETF
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| Amount: | $2,022,000
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| Maturity: | May 16, 2022
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 10% unless either asset falls below 70% trigger, in which case full exposure to any losses of worse performing index or fund
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| Call: | At par plus 14% if each asset closes at or above call level on any review date beginning May 13, 2019; call level will be 100% of initial level on first observation date, 97.5% on second review date, 95% on third date and 92.5% on fourth date
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| Initial levels: | 3,494.20 for Stoxx, $47.26 for fund
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| Trigger levels: | 2,445.94 for Stoxx, $33.082 for fund, 70% of initial levels
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| Pricing date: | April 20
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| Settlement date: | April 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435FWY9
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