Published on 7/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.73 million contingent coupon autocalls on three indexes
By Wendy Van Sickle
Columbus, Ohio, July 2 – HSBC USA Inc. priced $2.73 million of autocallable contingent coupon barrier notes due June 29, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 7.6% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless any index finishes below its 70% trigger level, in which case the payout will be par plus the return of the worst performing index with full exposure to any losses.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $2,733,000
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| Maturity: | June 29, 2022
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| Coupon: | 7.6% annualized, payable quarterly if each index closes at or above 70% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below 70% trigger, in which case 1% loss per 1% decline of worse performing index
|
| Call: | After six months at par if each index closes at or above initial level on any quarterly observation date
|
| Initial levels: | 2,749.76 for S&P, 1,688.95 for Russell and 3,403.51 for Stoxx
|
| Barrier/triggers: | 1,924.832 for S&P, 1,182.265 for Russell and 2,382.457 for Stoxx, 70% of initial levels
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| Pricing date: | June 21
|
| Settlement date: | June 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.18%
|
| Cusip: | 40435FG92
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